#BinanceAlphaAlert The UK government has rolled out new regulations requiring cryptocurrency companies to collect and share detailed data on customer transactions and transfers. This move, spearheaded by HM Revenue and Customs (HMRC), is designed to increase transparency in the crypto industry and ensure better tax compliance. Set to take effect on January 1, 2026, the guidelines encourage firms to start gathering this data early to ease the transition.Under the new rules, crypto businesses must record and report specific details for every transaction. This includes the customer’s full name, residential address, and tax identification number. Firms will also need to document the type of cryptocurrency involved, the transaction amount, and information about any entities—like companies, trusts, or participating in the transfers. These requirements align with the UK’s adoption of the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework (CARF), now expanded to cover domestic reporting. Non-compliance or inaccurate reporting could lead to fines of up to £300 (around $398) per user. Depending on the data collected, companies may also need to submit yearly reports to HMRC.In a related development, UK Chancellor Rachel Reeves unveiled a draft framework in late April to regulate digital assets, aiming to enhance consumer protection and build confidence in the crypto market. Announced on April 29, the proposed legislation will introduce stricter rules for crypto-related services, including trading platforms, wallet providers, and lending services. This follows the UK Treasury’s 2023 consultation, which laid out plans to bring a wide range of crypto activities under formal financial oversight. Reeves emphasized that these measures are part of the government’s Plan for Change, designed to foster growth while ensuring investor safety.The UK’s push to regulate cryptocurrencies reflects its broader goal of aligning the sector with traditional financial standards. By setting clear compliance expectations, the government aims to reduce risks for consumers and create a more stable environment for digital assets. As these regulations take shape, crypto firms and investors alike will be watching closely to see how they impact the future of the industry in the UK.#BTC $BTC