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UK to Require Crypto Firms to Report All User Transactions Starting January 2026
The UK government has announced that, starting from January 1, 2026, all crypto asset service providers (CASPs) will be required to report user transaction data. This move aligns with the OECD’s Crypto-Asset Reporting Framework (CARF), aimed at enhancing global tax transparency and preventing tax evasion.
What Will Be Reported?
Under the new rules, crypto firms must collect and report the following details:
User identity, tax residence, and taxpayer identification number (TIN)
Details of all crypto transactions including purchases, sales, exchanges, and transfers
Types and quantities of crypto assets held by each user
These reports must be submitted annually, with the first report due by May 31, 2027.
Penalties for Non-Compliance
If a crypto firm fails to comply with the reporting obligations, it may face penalties of £300 per user. These fines follow the model rules outlined by the OECD for digital platforms to ensure consistent enforcement across jurisdictions.
Impact on Users
UK crypto users should be aware that their transaction data will now be visible to HMRC (Her Majesty’s Revenue and Customs).
If a user has not reported past crypto income or gains, HMRC could use the reported data to assess taxes retroactively and impose fines or interest.
Background of UK’s Crypto Policy
The UK government is actively working to bring crypto assets under regulatory oversight similar to traditional financial assets.
The Financial Conduct Authority (FCA) has already introduced strict advertising and marketing rules for crypto products, and by 2026, all crypto service providers operating in the UK will be required to obtain formal authorization.
Summary
Reporting starts: January 2026
First submission deadline: May 31, 2027
Firms must report user identity and transaction data
Penalty for non-compliance: £300 per user
HMRC will gain direct access to user crypto data
