Is crypto mining legal in the UK?

Crypto mining in the UK is legal, and there is no mining licence or registration. The UK's crypto rules focus on firms that trade, hold or stake crypto for customers. For a miner, the main legal points are paying for the electricity you use and reporting the income to HMRC.

Is crypto mining legal in the UK?

Yes. Parliament made the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 on February 4, 2026, and the new regime is expected to start on October 25, 2027. The new regulated activities are issuing qualifying stablecoins, safeguarding crypto, operating a trading platform, dealing, arranging deals and staking. Mining is not on that list.

That fits the Treasury's earlier thinking. When it consulted in 2023, it listed mining and validation as areas that could be considered over time, but said there may not be strong reasons to regulate mining because so little of it happens in the UK, according to the law firm Reed Smith. Who does what in UK crypto oversight is covered in who regulates crypto in the UK.

What electricity rules apply to UK crypto miners?

We found no UK ban or special electricity tariff for mining as of October 2026. Miners pay for power like any other customer. What is illegal is taking electricity without paying for it.

In May 2021, West Midlands Police raided an industrial unit in Sandwell expecting a cannabis farm and found about 100 machines mining crypto. Police said mining is not itself illegal, but checks with the network operator showed the supply had been bypassed to steal electricity. How much power a rig draws, and why that matters, is explained in how bitcoin mining works.

How is bitcoin mining taxed in the UK?

HMRC's Cryptoassets Manual says mining can be a trade, depending on the degree of activity, organisation, risk and commerciality. If it is a trade, the tokens are trade receipts. If it is not, the sterling value of the tokens when received is taxed as miscellaneous income, and appropriate expenses can reduce the amount taxed.

Keeping the mined tokens and later selling or swapping them can also trigger Capital Gains Tax. For the 2026 to 2027 tax year, the first £3,000 of total gains is tax-free, and gains above that are taxed at 18% or 24% depending on your income band. The full rules are in how crypto is taxed in the UK, and other countries are compared in how crypto mining is taxed.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.