Starting January 1, 2026, crypto companies in the United Kingdom must collect and report detailed user data for every customer transaction or face severe penalties.
The move is part of the UK government’s effort to improve crypto tax reporting.
UK Aims to Improve Crypto Tax Reporting
From 2026, crypto firms in the United Kingdom must report customer transactions on their platforms or face penalties. The initiative comes as the UK government tries to improve crypto tax reporting in the country. According to a statement issued by the UK Revenue and Customs department, crypto companies will need to collect and report data from every customer trade and transfer as of January 1, 2026.
In its statement, the Revenue and Customs department said everything must be collected for each transaction, including the platform user’s full name, home address, and tax number. Platforms, however, only need to report UK tax residents and taxpayers from any country party to the CARF (Cryptoasset Reporting Framework) rules. Details also include the cryptocurrency used and the amount moved. The reporting mandate applies not only to individuals, but also includes details of companies, trusts and charities transacting on these platforms.
Per the statement, companies must submit their first reports by May 31 2027, providing details from January 1, 2026, to December 31, 2026. After submitting their initial reports, crypto companies must submit a report by May 31, providing details for the previous calendar year in the future. Reports must be submitted via the UK government’s online service, which is still not live. The UK Revenue and Customs department said it would update and provide guidance to users when the system is online.
Companies that fail to comply with the new reporting rules may face a penalty of up to 300 British pounds per user. Penalties may be issued when a company fails to issue a report, submits a report late, or submits an incomplete, inaccurate or unverified report.
UK to Introduce Comprehensive Crypto Framework
The new rule is part of the UK’s introduction of the Organisation for Economic Development (OECD) Cryptoasset Reporting Framework as it expands its taxation and regulatory framework and encourages UK crypto users to comply with the globally developing regulatory environment.
In 2024, the UK’s Financial Conduct Authority (FCA) announced plans to implement comprehensive cryptocurrency regulations by 2026. The financial authority’s initiative comes as digital asset adoption has dramatically increased. The FCA’s plans will focus on transparency, market abuse, and decentralised data disclosure while fostering innovation in the industry.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.