Woofun AI reports that UK tax authority HMRC has recovered over £8 million from 502 cryptocurrency investors through disclosure agreements since launching a special compliance operation in November 2023. The average settlement value stands at approximately £16,600. During the 2024/25 fiscal year, 280 individuals settled for £3.54 million, while 222 individuals agreed to pay around £4.78 million in the 2025/26 period.

HMRC also significantly increased outreach, sending 64,982 "nudge letters" in the 2024/25 fiscal year, representing a 680% increase compared to three or four years prior. With the UK adopting the OECD Crypto Asset Reporting Framework (CARF) starting in January 2026, crypto service providers will be mandated to collect and report user identity and transaction data. Currently, approximately 8% of UK adults, or 4.5 million people, hold cryptocurrency assets.