Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Coinbase’s tax reporting policies within United Kingdom. We’ll also break down a simple way to report your Coinbase taxes in minutes.
Does Coinbase report to HM Revenue & Customs (HMRC)?
Yes. Coinbase has reported information to HMRC for users on its platform which have a UK address and have received more than £5,000 worth of crypto. Coinbase alerted UK users of this fact in 2021. Given that Coinbase is a licensed business in the UK, the exchange is likely to continue reporting to HMRC as required by UK law.
What does HMRC do with the information that Coinbase provides?
HMRC has used data matching to crack down on crypto tax fraud. By using information provided by exchanges like Coinbase, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
Do I have to pay taxes on my Coinbase transactions?
Yes. In the UK, your transactions on Coinbase or other platforms are subject to capital gains tax and ordinary income tax.
If you’ve earned or disposed (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to HMRC.
For more information, check out our complete UK guide to cryptocurrency taxes.
Is Coinbase legal in the UK?
Yes. Coinbase operates legally in the UK.
How do I avoid Coinbase taxes in the UK?
Get a Coinbase tax report today
Looking for a simple way to report your Coinbase taxes? With CoinLedger, you can import your Coinbase transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Coinbase 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.
FAQs
Yes. Coinbase has reported information to HMRC for users on its platform which have a UK address and have received more than £5,000 worth of crypto.
Does Coinbase report to tax authorities? ›
Cryptocurrency transactions on Coinbase are subject to taxation, just like other financial transactions. In certain situations, Coinbase does report to the IRS. However, this does not absolve individual taxpayers from their responsibility to report their own transactions.
Does Coinbase report to CRA? ›
Yes. Although crypto offers a degree of anonymity, the Canadian government has the capability to trace crypto transactions. To ensure compliance, cryptocurrency exchanges are mandated to report transactions exceeding $10,000 to the Canada Revenue Agency (CRA).
Is Coinbase allowed in the UK? ›
Fortunately in the UK, you can buy Bitcoin on Coinbase's centralized exchange. Coinbase is the most trusted platform in the UK for buying, selling and trading Bitcoin. It's quick and easy. Here's a step-by-step guide on how to buy Bitcoin.
Does Coinbase report to the ATO? ›
Coinbase is registered with AUSTRAC, a government agency specifically designed to prevent financial crimes like money laundering and tax evasion. As a result, it's likely that Coinbase shares information about your taxable income with the Australian government.
Can the IRS see my Coinbase account? ›
Starting in the 2025 tax year, Coinbase will be required to report all capital gains and losses to the IRS through Form 1099-DA. In the past, Coinbase has turned over customer records to the IRS after being issued a John Doe Summons.
Does the IRS know about my crypto? ›
What if I get audited? The IRS has started auditing taxpayers specifically to evaluate their crypto trades. This is nothing to worry about and you are expected to disclose any addresses or wallets you own or control and any exchange accounts you have.
What crypto wallet does not report to the IRS? ›
Some cryptocurrency exchanges do not report user transactions to the IRS, including: Decentralized crypto exchanges (DEXs) like Uniswap and SushiSwap. Some peer-to-peer (P2P) platforms. Exchanges based outside the US that do not have a reporting obligation under US tax law.
Does Coinbase keep track of taxes? ›
Tax reports, including 1099s, are available for the tenure of your account. There is a range of gain/loss reports available as well. Your raw transaction history is available through custom reports. Coinbase Taxes reflects your activity on Coinbase.com but doesn't include Coinbase Pro or Coinbase Wallet activity.
Will Coinbase send me a 1099? ›
You'll receive IRS Form 1099-MISC from Coinbase if: You're a Coinbase customer AND. You're a US person for tax purposes AND. You've earned $600 or more in miscellaneous income such as rewards or fees from Learning rewards, USDC Rewards, and/or staking.
Yes. Coinbase has reported information to HMRC for users on its platform which have a UK address and have received more than £5,000 worth of crypto.
Will Coinbase report to HMRC? ›
Yes, Coinbase exchanges report to HMRC.
Which countries Cannot use Coinbase? ›
Coinbase NFT is supported in all countries except Singapore and any country restricted by the Office of Foreign Assets Control (OFAC).
Does the ATO know about your crypto? ›
Our crypto asset data-matching program matches what you report in your tax return with data on crypto asset transactions and accounts from designated service providers. This helps us identify the buyers and sellers of crypto assets and quantify transactions.
Do you have to file taxes with Coinbase? ›
You must report all capital gains and ordinary income made from Coinbase; there is no minimum threshold. This is confusing to many Coinbase users because the exchange only sends tax forms for certain types of income over $600. However, this doesn't change your obligation to report all taxable income.
Do you have to report crypto on taxes if you don't sell? ›
If you buy Bitcoin, there's nothing to report until you sell. If you earned crypto through staking, a hard fork, an airdrop or via any method other than buying it, you'll likely need to report it, even if you haven't sold it.
Which crypto exchanges do not report to the IRS? ›
Some cryptocurrency exchanges do not report user transactions to the IRS, including: Decentralized crypto exchanges (DEXs) like Uniswap and SushiSwap.
What if I earned less than 600 on Coinbase? ›
Less Than $600 Coinbase Transactions, Still Report? Yes, even if you receive less than $600 in therefore you do not receive a 1099-K from Coinbase, you are still required to report your Coinbase transactions that are considered income on your U.S. tax return (if you are otherwise required to file a tax return).
Do I need to report crypto on taxes if less than $600? ›
You must report income, gain, or loss from all taxable transactions involving virtual currency on your Federal income tax return for the taxable year of the transaction, regardless of the amount or whether you receive a payee statement or information return.
