The United Kingdom will require all crypto firms operating in the country to report detailed information on every customer transaction starting January 1, 2026, as part of a sweeping effort to enhance tax transparency and combat financial misconduct.
Announced by HM Revenue and Customs on May 14, the new rules mandate the collection and reporting of users’ full names, home addresses, tax identification numbers, and details of each crypto transaction — including the type of asset and amount involved. Organizations such as companies, trusts, and charities transacting on crypto platforms will also be subject to the reporting requirements.
Non-compliance or errors could result in penalties of up to £300 ($398) per user. Authorities are urging crypto firms to begin collecting this data now to prepare for the regulatory shift.
The move aligns the UK with the OECD’s Cryptoasset Reporting Framework (CARF), an international initiative designed to close gaps in global crypto tax reporting. It also supports the UK government’s broader goal of fostering a regulated, transparent, and secure digital asset industry.
“This sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” said Chancellor Rachel Reeves.
The UK’s approach differs from the European Union’s MiCA framework by allowing foreign stablecoin issuers to operate without registering locally and by avoiding volume caps on stablecoins — a measure the EU may enforce to mitigate systemic risks.
With 12% of UK adults now owning crypto, according to the Financial Conduct Authority, the move marks a major step toward integrating digital assets into the country’s financial oversight.