The UK requires cryptocurrency businesses to fully report user and transaction data starting in 2026, with a maximum fine of £300 per user for violations.

According to TechFlow news on May 17, reported by DL News, the UK will require cryptocurrency businesses to collect and report detailed user and transaction data starting in 2026. This requirement stems from the UK's adoption of the Crypto Asset Reporting Framework (CARF), aimed at combating tax evasion and enhancing the transparency of cryptocurrency transactions.

According to the new regulations, platforms are required to identify each user and record their legal details, address, and tax identification number. At the same time, businesses must record all transactions involving UK users or users from other CARF participating countries, including transaction value, asset type, quantity, and nature of transfer. This regulation also applies to overseas businesses serving UK customers, and incorrect or incomplete reporting will face a fine of up to £300 per user.

UK Chancellor of the Exchequer Rachel Reeves stated that these regulatory measures will enhance investor confidence, support the development of fintech, and protect the rights of the UK public. Compared to the EU's MiCA regulations, the UK has chosen to incorporate cryptocurrencies into the existing financial framework rather than establish an independent regulatory system.