According to CoinMeta and market data, the UK's cryptocurrency taxation policy will mandate that users submit tax information by January 2027 through Coinbase. According to the regulations of the UK Tax and Customs Administration ( HMRC ), cryptocurrencies are considered to be subject to capital gains tax ( CGT ) or income tax. Users who sell or trade cryptocurrencies exceeding the £3,000 tax-free threshold are required to pay 18% or 24% CGT , and those who earn cryptocurrencies from staking or mining, exceeding the personal £12,570 tax-free limit, are subject to income tax ranging from 20% to 45%. Considering that users already pay a fee of 10% to 20% when buying and selling, if they invest £30,000 and the value increases to £40,000, they would need to pay £2,000 in taxes on the £10,000 profit, resulting in a final profit of £8,000. However, upon sale, they would also have to pay at least another 20% in fees and price differences, which reduces the profit by 40%, leaving a final profit of only £6,000.