The UK tax authority HMRC has announced the implementation of new regulations for reporting cryptocurrency starting from January 1, 2026, in a move aimed at enhancing transparency and combating tax evasion in this sector
Key provisions of the new regulation
Collecting user data
Cryptocurrency platforms will be required to record users' identities in detail, including
Legal name
Address
Tax identification number
Track transactions
Reporting every transaction involving UK users or countries participating under the CARF global reporting standard for crypto assets
The report includes the transaction value, type of assets, quantity, and nature of the transfer (purchases, sales, transfers, etc.)
Inclusivity of the application
The rules apply even to foreign companies serving UK customers
Non-compliance may expose users to fines of up to three hundred pounds for each incomplete or inaccurate report
The purpose of the changes
Aligning the cryptocurrency sector with traditional banking standards
Reducing cross-border tax evasion
Enhancing international cooperation in regulating digital assets under the CARF framework
This step comes as part of a global trend to regulate cryptocurrencies, with countries like the European Union and the United States adopting similar measures to control this rapidly growing market-39/