Key takeaways
- Base App does not report directly to HMRC.
- HMRC can still likely trace your identity when you move funds between Base App and a crypto exchange registered in the UK.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Baseâs tax reporting policies within United Kingdom. Weâll also break down a simple way to report your Base taxes in minutes.
What is Base App?
Base App (formerly known as Coinbase Wallet) is a self-custody wallet for managing cryptocurrency and NFTs. It also comes with built-in social media and messaging features.Â
Base App itself doesnât collect Know Your Customer (KYC) data or send tax forms. However, your activity can be tied to you if youâve moved funds to or from a UK-registered exchange.
Does Base App report to HMRC?
No. Base App doesnât issue tax forms or share data with HMRC.
That said, HMRC can trace your crypto transactions:Â
- Blockchain transactions are public and traceable. If youâve transferred crypto to/from an exchange with KYC, itâs likely your wallet address can be linked to your identity.Â
- In 2026, the Crypto-Asset Reporting Framework (CARF) will require UK-based exchanges and custodial wallets to share customer transaction data with HMRC. It's likely these regulations will give the HMRC more data to identify âanonymousâ wallets.
If I use Base App in the UK, do I owe taxes?
Yes. Crypto transactions in Base App and other wallets are subject to tax in the UK.
- Capital gains: Disposals like selling or swapping crypto are subject to capital gains tax.Â
- Income: When you earn crypto through staking, mining, and airdrops, this is taxed as income based on fair market value at time of receipt.Â
Itâs important to note that moving crypto between your own wallets (from Coinbase to Base App) is not a taxable event.
Does Base App have KYC?
No. You can set up and use Base App without providing ID.Â
However, if you purchase crypto by using Coinbaseâs integrated exchange service within the app, you may need to complete KYC.
Is Base App legal in the UK?
Yes. Base App is legal to use in the UK. You are required to comply with HMRC rules when reporting your gains and income.
How do I reduce my UK taxes from Base App activity?
Thereâs no way to legally evade your taxes. However, these steps can help you legally minimize your tax bill:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset capital gains and reduce your taxes. â
- Use crypto tax software: Crypto tax software like CoinLedger can track activity from Base App and other wallets, helping you find tax-saving opportunities.
Looking for a simple way to report your Base taxes? With CoinLedger, you can import your Base transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Base and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Hereâs how CoinLedger makes reporting your crypto taxes easier than ever:Â
- Import transactions automatically from Base App and hundreds of other wallets and exchanges
- Track your capital gains and income in real-time
- Generate ready-to-file HMRC tax reports
Get started with a free CoinLedger account today.
