Key takeaways
- Magic Eden does not report directly to HMRC.
- HMRC can still monitor NFT activity through blockchain data.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Magic Eden’s tax reporting policies within United Kingdom. We’ll also break down a simple way to report your Magic Eden taxes in minutes.
What is Magic Eden?
Magic Eden is a decentralized NFT marketplace that supports blockchains like Solana and Ethereum.
Because it is non-custodial, Magic Eden does not collect Know Your Customer (KYC) information and does not issue tax forms. You are responsible for tracking and reporting taxable events to HMRC.
Does Magic Eden report to HMRC?
No. Magic Eden does not share customer data with HMRC or issue tax forms.
However, the HMRC still has tools to detect undeclared NFT activity:
- Blockchain analysis: All NFT transactions on Magic Eden are public and traceable. HMRC can likely trace your identity, especially if you’ve transferred your crypto to/from an exchange with KYC.
- CARF: The Crypto-Asset Reporting Framework (CARF) will be in effect starting from 1 January 2026, requiring UK exchanges and custodial wallets to report detailed customer/transaction data. This will likely give HMRC more information to identify ‘anonymous’ wallets.
If I use Magic Eden in the UK, do I owe taxes?
Yes. NFT activity is taxable in the UK:
- Capital gains: Selling and swapping NFTs on Magic Eden is subject to capital gains tax.
- Income: Income such as royalties, NFT airdrops, and/or NFT staking rewards are taxed as income upon receipt.
Moving NFTs or crypto between your own wallets is not taxable.
Does Magic Eden have KYC?
No. You can use Magic Eden without verifying your identity.
Is Magic Eden legal in the UK?
Yes. Magic Eden is legal to use in the UK.
You are required to accurately report your capital gains and income from NFTs to HMRC.
How do I avoid Magic Eden taxes in the UK?
You cannot legally evade taxes in the UK. However, you can take steps to reduce what you owe:
- Tax-loss harvesting: When you sell NFTs/crypto at a loss, you can offset capital gains.
- Use crypto tax software: Crypto tax software like CoinLedger can import trades from Magic Eden and other platforms and help you spot your biggest tax-saving opportunities.
Looking for a simple way to report your Magic Eden taxes? With CoinLedger, you can import your Magic Eden transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Magic Eden 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
Here’s how CoinLedger can help you report your taxes on Magic Eden and other platforms:
- Import NFT and crypto trades across hundreds of blockchains
- Track capital gains and income in one dashboard
- Generate HMRC tax reports
Get started with a free account today.
