The British government is cracking down on cryptocurrency investors over unpaid taxes.
In a statement, the government has called upon all crypto users across the United Kingdom (U.K.) to voluntarily disclose any unpaid capital gains or income taxes and avoid penalties.
The government has also published a guide on its website about how crypto investors can pay their taxes and avoid financial penalties.
Tax disclosures should reflect any capital gains or income earned from major digital tokens such as Bitcoin (BTC) and Ethereum, as well as non-fungible tokens (NFTs), and smaller cryptocurrencies, says the government guide.
Users who make cryptocurrency tax disclosures to the U.K. Treasury have 30 days from the disclosure date to make necessary payments.
The government notice warns that the British Treasury is stepping up measures to recover tax money owed on crypto investments, and users may face severe penalties for failing to disclose.
In 2021, the British Treasury published a manual to help U.K. crypto holders pay taxes, and the country announced in March of this year that people would have to declare their cryptocurrency holdings in separate tax forms.
Bitcoin’s price is up 132% this year and currently trading at $38,500 U.S. per token.
