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Independent UK guidance

The UK guide to owning digital assets — tax, regulation, and safe custody.

Never owned crypto? Start with our plain-English basics. When you are ready, read simple guides on tax, staying safe, and UK rules — all checked against gov.uk, HMRC and FCA sources.

Information only · Not financial advice · Last reviewed June 2026

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No jargon — start with the basics

We explain blockchain, wallets and bitcoin in everyday language before you read anything about tax or regulation.

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Essential guides

Quick answers

Common questions

What are digital assets in simple terms?

Digital assets are valuable items that exist online — like bitcoin, digital collectibles (NFTs), or tokens in an app. You own them through an account or wallet, not as paper or coins. They are legal to own in the UK but risky, and not the same as money in your bank.

Do I pay tax on cryptocurrency in the UK?

You may pay Capital Gains Tax when you dispose of cryptoassets — by selling, swapping, spending or gifting them. You may pay Income Tax when you receive crypto as earnings, mining rewards or certain staking income. You must keep records and report to HMRC when your gains exceed the annual exempt amount or you have income to declare.

Is cryptocurrency legal in the UK?

Yes. Owning, buying and selling cryptoassets is legal in the United Kingdom. Firms providing services must comply with FCA anti-money-laundering registration and financial promotions rules. You must also comply with HMRC tax obligations.

What is the FCA crypto register?

The FCA maintains a register of firms approved to conduct cryptoasset activities under the Money Laundering Regulations. Check the Financial Services Register before using an exchange or custodian.

What is the CGT allowance for crypto in 2025/26?

Crypto gains count towards your overall Capital Gains Tax annual exempt amount, which is £3,000 for the 2025/26 tax year. There is no separate crypto-specific allowance.

Is bitcoin legal tender in the UK?

No. Legal tender in the UK is pound sterling (banknotes and coins issued by the Bank of England and authorised banks). Bitcoin is a cryptoasset, not official currency.

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FAQ

What is a digital asset?

Something valuable that exists online — like bitcoin or a digital collectible. You can own it, send it or sell it through an app. It is not the same as pounds in your bank.

Is Digital Assets free?

Yes. Every guide is free to read with no sign-up. We publish general information only — not regulated financial advice.

Do you give personal financial advice?

No. For a personal recommendation, speak to an FCA-regulated adviser or contact MoneyHelper for free guidance.

Is cryptocurrency legal in the UK?

Yes. Owning and trading crypto is legal. You must comply with tax rules and use FCA-registered firms where required.

Can I lose all my money?

Yes. Crypto prices can collapse. Scams are common. There is usually no compensation if something goes wrong.