Does Kraken Report to HMRC?
If you've traded on Kraken in the UK, HMRC may already be one step ahead of you when it comes to crypto taxes. Learn what and how Kraken reports to HMRC.
Kraken gathers customer information in accordance with FCA guidelines, and this information can be provided to HMRC.
HMRC relies on this data to trace and reach out to individuals who might be underreporting crypto activity or failing to meet their tax obligations.
From January 2026, UK crypto platforms like Kraken must begin collecting user data for HMRC as part of the new Crypto-Asset Reporting Framework (CARF).
Is Kraken legal in the UK?
Yes, Kraken is legal and fully authorized to operate in the UK.
The platform is registered with the Financial Conduct Authority (FCA) as a cryptoasset business under the name Payward Ltd. (FRN 928768). Under newer regulations, Kraken also holds an Electronic Money Institution (EMI) licence, which allows it to facilitate fiat services such as issuing electronic money and handling GBP deposits and withdrawals.
UK residents can use Kraken for buying, selling, and trading crypto, but due to regulatory restrictions, which apply to all FCA-Registered platforms, other features are unavailable, including opt-in rewards, derivatives trading, and some specific cryptocurrencies.
Read next: What are my FCA-Registered crypto exchange options in the UK?
Does Kraken report to HMRC?
Yes, Kraken may be sharing customer information with HMRC. HMRC has requested data from major crypto exchanges regarding UK taxpayers, and while it hasn’t been publicly confirmed whether Kraken has already provided this information, several major platforms have complied with similar requests.
Beginning in January 2026, the OECD’s Crypto-Asset Reporting Framework (CARF) will come into effect. Under these new rules, HMRC has confirmed that all UK-based crypto exchanges, including Kraken, will be required to collect and report customer data to help ensure tax compliance.
Read next: What happens when you don't report your taxes in the UK?
What does Kraken report to HMRC?
It’s not yet clear what specific information Kraken may have shared with HMRC, as no official disclosures have been made. However, once the OECD’s Crypto-Asset Reporting Framework (CARF) takes effect, all UK-based crypto platforms, including Kraken, will be obligated to collect and report detailed customer data to HMRC.
This data will include a user’s full name, address, country of residence, wallet address, and comprehensive transaction details, such as transfers, disposals, gross proceeds, and the fair market value of crypto assets. Exchanges must begin gathering this information in January 2026, with reporting required for the 2026 calendar year by May 2027. Non-compliance could lead to penalties of up to £300 per user.
Read next: HMRC Crypto Letters
What does HMRC do with the information Kraken provides?
HMRC has previously used information provided by crypto exchanges to contact taxpayers it believes may not have accurately reported their transactions or paid the necessary tax.
It’s possible that Kraken data could be used in a similar way, with HMRC initiating audits of individuals suspected of underreporting their crypto activity as part of efforts to recover unpaid taxes.
How do I report my Kraken taxes to HMRC?
UK Kraken users are required to report any crypto gains, losses, or income as part of their self-assessment tax return, which can be filed online via the Government Gateway.
Kraken doesn’t provide UK-specific tax forms, but using a crypto tax calculator like Koinly can help streamline the process by generating the appropriate tax reports based on your transaction history.
Read next: Crypto Taxes UK Guide
Report your Kraken taxes with Koinly
Koinly makes Kraken tax reporting easy. You can automatically import your Kraken transactions by connecting your account via SSO or by uploading a CSV file.
Once your data is synced, Koinly calculates your gains, losses, income, and other relevant figures, then generates the tax reports needed for your HMRC self-assessment. Learn how to generate your Kraken tax forms with Koinly.
FAQs
Do I have to pay tax on my Kraken transactions?
Yes. In the UK, any gains exceeding the tax-free allowance, as well as any income earned from crypto, are taxable. For full details, see our UK crypto tax guide.
Is Kraken registered with the FCA?
Yes. Kraken, through its UK entity Payward Ltd., is registered with the FCA as a cryptoasset business. It also holds an Electronic Money Institution (EMI) licence, allowing it to offer fiat-related services in compliance with UK regulations.
How do I avoid Kraken taxes in the UK?
Illegally avoiding crypto taxes in the UK can result in significant penalties. However, there are legal ways to reduce your tax liability. Techniques such as tax loss harvesting can help minimize your overall bill.
Tools like Koinly’s tax optimization feature can assist in applying these strategies. Check out our guide on how to legally avoid crypto tax in the UK.
