Crypto casinos to report every transaction to HMRC by 2026

HM Revenue and Customs (HMRC) has said businesses will have to start reporting all cryptocurrency transactions to them by 2026. This includes transactions of all sizes and will include all types of businesses, likely including crypto casinos as well as exchanges. 

The requirements will make it easier for financial and tax authorities to monitor cryptocurrency transactions and ensure tax compliance. It is the latest HMRC move to comply with the Crypto Asset Reporting Framework (CARF) set out by the Organisation for Economic Co-Operation and Development (OECD).

Want to play something different? Try these best new casino sites UK with fresh games!

The OECD is a global organisation consisting of approximately 50 member countries from around the world. It guides policymaking in member and non-member countries to foster cooperation and transparency between jurisdictions. 

In this case, the policy aims to help prevent tax evasion, which is made possible by anonymous cryptocurrency transactions. While gamblers do not pay tax on gambling winnings in the UK, they may be liable to capital gains taxes on their cryptocurrency transactions. 

Under the new proposals, all firms that accept or initiate cryptocurrency transactions will have to report transactions to HMRC. This will mean gathering and submitting user name and address details as well as a tax ID number, the cryptocurrency used, and the value, date, and time of the transaction. Firms that fail to meet the new requirements will face fines of up to £300 per user, and HMRC has warned companies they should start gathering data now to be ready for the implementation of the new rules.

Cryptocurrency’s anonymity has seen its popularity rise, especially in jurisdictions where online gambling is illegal. It is becoming increasingly popular in the UK, where the UK Gambling Commission has implemented new restrictions and limits like maximum stakes at online slots. Globally, crypto casinos took more than £60bn in revenue last year.

The new reporting requirement is the latest proposed change from HMRC aimed at meeting CARF requirements. The body has also issued proposals that would bring crypto exchanges and specialist crypto firms under the same guidelines as existing financial firms. This would also see crypto lending and borrowing being subject to the same credit check and Know Your Customer (KYC) detail checks as other forms of financing. 

Gamblers may also be prevented from purchasing cryptocurrency using credit cards under further proposals. The Financial Conduct Authority (FCA) said earlier this year that it wants to ban the acquisition of cryptocurrencies using credit. The group aims to prevent commercial investors from borrowing to fund crypto investments using any form of credit. 

Credit card purchases are the main area for concern, but other forms of credit are also in the crosshairs. Personal loans and crypto-specific credit are also being targeted. However, exceptions may be made for buyers of FCA-regulated stablecoins, because these will be vetted by the group and should offer a greater degree of transparency and lower risk.