If you trade or invest in crypto and live in the UK, it’s time to get ready for some major changes.
From 1 January 2026, HMRC (His Majesty’s Revenue and Customs) will have new powers to collect detailed information about your crypto transactions. This is part of a global move to make crypto trading more transparent – and it’s going to affect almost everyone who buys, sells, or holds crypto.
What’s Changing?
HMRC is adopting new reporting standards based on the OECD’s Crypto‑Asset Reporting Framework (CARF). This framework is designed to crack down on tax evasion and hidden profits by forcing crypto exchanges and other crypto service providers to collect and share more data about their users.
Under these new rules, Crypto-Asset Service Providers (CASPs) – that means crypto exchanges, brokers, NFT platforms, and similar businesses – will have to collect detailed information on anyone using their services.
For individual users, that means:
Full legal name
Date of birth
Home address
Country of residence
National Insurance number (for UK residents) or Tax Identification Number (if you live abroad)
Not only that, but CASPs must also track individual transactions. This includes the type of asset traded (Bitcoin, Ethereum, etc.), the number of units, the value, and the date of the transaction.
Why Is This Happening?
This is all part of a coordinated effort by tax authorities around the world to close the gap between crypto profits and tax declarations.
The UK, along with countries in the EU and beyond, will be enforcing these new standards from January 2026 to make sure that crypto profits don’t go unnoticed.
The first annual reports from exchanges will be due by 31 May 2027, covering the whole of 2026. After that, reporting will continue every year.
The days of casually trading crypto without HMRC knowing about it are numbered. Even small trades could soon land on HMRC’s desk, and any unreported profits might lead to penalties or even investigations.
It’s also important to note that the capital gains tax (CGT) allowance has dropped in the UK. From April 2024, the annual CGT allowance is just £3,000, meaning that even modest crypto profits may now be taxable.
What Can You Do?
If you’re concerned about privacy or how these changes might affect your crypto strategy, now’s the time to review where and how you buy crypto. Using non-custodial wallets and decentralised exchanges (DEXs) could be one way to maintain more privacy.
And once you’ve bought your crypto, it’s just as important to manage it wisely. Check out 5 Things Smart Crypto Investors Never Do After They Buy Bitcoin to avoid common mistakes and keep your strategy sharp.
How To Buy Crypto With No KYC In UK
Amid growing regulatory scrutiny in the United Kingdom, the hunt is on for non-custodial crypto wallets that offer full privacy while being well-rounded in other aspects like usability, security, and liquidity.
Among the best options is Best Wallet, a comprehensive Web3 solution that allows users to buy, trade, and store thousands of cryptocurrencies without undergoing identity verification, making it one of the best No KYC wallets in the market today.
Security is another reason why Best Wallet remains a go-to choice for UK residents seeking to dive into the crypto realm. Apart from its self-custody posture, Best Wallet has also integrated top features like Fireblocks to ensure maximum protection of user funds.
Best Wallet already catered to hundreds of thousands of users with its support for multiple onramp providers, making fiat payments fast and hassle-free. Its support for multiple chains, including Bitcoin, Ethereum, BNB Smart Chain, Polygon, and Base adds to its growing appeal, especially among those aiming to build a large yet diversified portfolio.
What’s more? Best Wallet gives savvy investors the opportunity to spot and invest in promising cryptos at zero stages through its “Upcoming Tokens” tool. And with more premium tools like a staking aggregator, portfolio management, market insights dashboard, NFT gallery, and a whole lot more on the horizon, Best Wallet is well-positioned to become a one-stop shop for all things crypto.
Visit Best Wallet
This article has been provided by one of our commercial partners and does not reflect Cryptonomist’s opinion. Please be aware our commercial partners may use affiliate programs to generate revenues through the links on this article.
