HMRC sent more than 81,000 nudge letters to crypto investors suspected of unpaid tax over the past year, a 25% increase from about 65,000 the previous year, according to a Freedom of Information request analyzed by UHY Hacker Young. The total had nearly tripled from 27,714 two years earlier. Through formal settlements, the authority recovered more than £8.3 million over two years, with £3.5 million in 2024–25 and £4.8 million in 2025–26, lifting the average per-case recovery from £12,500 to £21,600. The letters seek voluntary disclosures before investigations, with penalties capped at 30% of unpaid tax for early reporting. Crypto exchanges, token purchases of goods or services, and transfers may qualify as taxable disposals, while lending and staking income may fall under separate income-tax rules. UK residents are taxed on worldwide gains. From April 2027, qualifying crypto lending and automated market-making arrangements will receive no-gain, no-loss treatment until an economic disposal, potentially affecting about 700,000 people. The OECD Cryptoasset Reporting Framework will begin sharing data in 2027 across 52 jurisdictions, with a further 15 joining in 2028, and the EU DAC8 directive takes effect in 2026 with exchanges by September 2027. As offshore exchanges begin supplying transaction records, the long-standing assumption that crypto activity abroad is shielded from tax authorities becomes harder to sustain.