Every trade, every user, every detail — UK crypto firms will be required to report it all starting January 2026.
Starting Jan. 1, 2026, all UK crypto companies must collect and report detailed customer and transaction data to HMRC. Required data includes a user’s full name, address, date of birth, tax ID, and country of residence — even for non-UK users.
Firms must report each transaction, specifying the crypto used, value, transaction type, and units moved. For entities, the rules demand legal names, registration numbers, and in some cases, data on controlling persons.
Failure to comply or filing incorrect data may result in penalties of up to £300 ($398) per user.
Why It’s Happening
The new policy is part of the UK’s adoption of the OECD’s Crypto-Asset Reporting Framework (CARF) — designed to close global crypto tax gaps. The UK Revenue & Customs (HMRC) says the new rules aim to boost transparency, reduce fraud, and align with broader international efforts. Officials are urging firms to begin collecting data now to ensure a smooth transition.
UK Chancellor Rachel Reeves called the move a sign that “Britain is open for business — but closed to fraud, abuse, and instability.” This follows a draft bill introduced in April to regulate exchanges, custodians, and broker-dealers, tackling crypto scams head-on.
Growing Adoption
A 2023 FCA study found 14% of UK adults now own crypto, up from just 4% in 2021. The YouGov survey shows crypto adoption among Britons more than doubled from 2022 to 2023, reflecting rising mainstream interest.
UK Goes Its Own Way
- Unlike the EU’s MiCA rules, the UK will:
• Allow foreign stablecoin issuers without mandatory registration
• Avoid imposing volume caps on stablecoin usage - This makes the UK’s framework more open and industry-friendly, while still increasing tax oversight.
The UK is tightening its grip on crypto, not by banning it, but by demanding full transparency.
For investors, full KYC/AML integration by 2026.
Crypto is still welcome in the UK — but it’s no longer the Wild West.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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