Cryptocurrency users in the UK will be required to provide personal information to service providers starting in 2026 for tax control purposes and to avoid penalties.
This regulation requires the provision of full name, date of birth, address, country of residence, and tax number, applicable to all cryptocurrency service providers such as exchanges, wallet apps, NFT markets, and digital asset management services.
MAIN CONTENT
The UK will implement regulations to collect personal information from cryptocurrency users starting from 1/1/2026.
The required data includes full name, date of birth, address, country of residence, and tax number.
The goal is to link cryptocurrency asset activities with tax records and penalize violations.
What is the new UK regulation on collecting information from cryptocurrency users?
Information from HM Revenue and Customs (HMRC) indicates that starting from 1/1/2026, cryptocurrency users in the UK will be required to provide personal data to service providers for tax management purposes.
This measure includes collecting full name, date of birth, residential address, country, and tax number to enhance transparency and prevent tax fraud in the cryptocurrency sector.
Who does the regulation apply to and what types of services?
This is a mandatory regulation for all entities classified as cryptocurrency service providers in the UK, such as exchanges, wallet apps, NFT markets, and digital asset management services.
The expansion of the scope helps the tax authorities easily track cryptocurrency transactions, ensuring that users and businesses comply with tax obligations.
"Connecting cryptocurrency asset activities with tax records will enhance tax collection efficiency and clarify user responsibilities," said an HMRC representative in July 2024.
HM Revenue and Customs, announced the policy in July 2024
How can cryptocurrency users be penalized if they do not comply?
Users who do not provide complete information as required may face a penalty of up to £300, equivalent to approximately 408 USD.
This penalty reflects the strictness of the UK government's cryptocurrency tax management while encouraging transparency in digital asset transaction activities.
What is the impact of the regulation on the market and cryptocurrency users in the UK?
The policy is expected to encourage users to comply with tax regulations while creating a transparent environment that helps cryptocurrency service providers enhance their credibility and legal responsibility.
According to reports from financial tax experts in 2024, enhancing control over personal data linked to cryptocurrency activities helps reduce tax evasion risks and protects users from fraudulent activities.
Compare penalties and tax handling measures for cryptocurrencies in the UK with some other countries
Country Information Required Penalty for Violation Notes UK Full name, DOB, address, country, tax number £300 (408 USD) Law applies from 1/1/2026 USA Personal information, transaction history, income Fines, criminal prosecution Strict regulations, IRS coordination Germany Personal information and transactions Fines up to several thousand euros Focus on financial transparency
Frequently Asked Questions
1. Why does the UK government require personal information from cryptocurrency users?
HMRC needs to link digital asset activities with tax records to enhance transparency and effectively combat tax evasion.
2. What information needs to be provided under the new regulations?
Full name, date of birth, residential address, country, and tax number are mandatory data.
3. Which cryptocurrency providers are affected by this regulation?
All organizations providing cryptocurrency services such as exchanges, wallets, NFT markets, and cryptocurrency asset management services in the UK.
4. What is the penalty for not complying with the new regulation?
Users may be fined up to £300, equivalent to 408 USD if they do not provide information on time.
5. What impact does this regulation have on cryptocurrency transactions in the UK?
Helps strengthen tax management and minimize fraud risks, while enhancing the legal responsibility of users.
Source: https://tintucbitcoin.com/nguoi-dung-tien-ao-anh-co-the-bi-phat/
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