UK to Enforce New Crypto Reporting Rules Starting January 2026
Overview:
The UK tax authority has announced that starting January 1, 2026, all crypto-asset service providers must comply with enhanced reporting obligations under the Crypto-Asset Reporting Framework (CARF).
Key Requirements:
User Identification:
Platforms must collect users’ legal identity, address, and taxpayer identification number (TIN).
Transaction Reporting:
Every crypto transaction must include details such as:
Transaction amount
Asset type and quantity
Transfer classification (e.g., buy/sell/transfer)
Global Applicability:
Foreign crypto platforms serving UK customers must also comply.
Penalties for Non-Compliance:
Failure to report accurately or fully may result in fines of up to £300 per user.
Purpose:
The regulation aims to curb tax evasion, align crypto with banking transparency standards, and enhance global tax cooperation through CARF.
