From January 1, 2026, all cryptocurrency companies operating in the UK or serving its citizens will be required to report to tax authorities about each user and each transaction. The new rules will be introduced by Her Majesty's Revenue and Customs (HMRC) as part of the global Cryptoasset Reporting Framework (CARF).
The aim of the innovation is to enhance transparency in the crypto market and combat tax evasion, which should bring reporting standards in the crypto sphere closer to those in banking.
Companies will need to collect and provide HMRC with the following information about users:
full name, address, and tax identification number (TIN);
data on all transactions: type and amount of assets, cost and nature of the operation.
The obligation applies to both domestic and foreign platforms working with British clients. Penalties of up to £300 per user are provided for violations or incomplete reporting.
Despite the mandatory reporting starting only in 2026, the British authorities recommend that companies begin data collection now to adapt their processes and infrastructure in time.
Thus, the British government aims to combine regulation with support for fintech. In April, during UK Fintech Week, Finance Minister Rachel Reeves announced the preparation of a bill that will integrate exchanges, custodial services, and other participants in the crypto market into a single regulatory framework.
"Reliable rules in the cryptocurrency sector will increase investor confidence, promote fintech development, and protect citizens across the country," Reeves emphasized.
Britain is also exploring the possibility of creating a transatlantic regulatory 'sandbox' for digital assets in collaboration with the USA.
The country's new approach differs from the MiCA regulation adopted in the European Union.
Instead of creating a separate structure, the UK will integrate cryptocurrencies into existing financial legislation. This applies to lending, staking, stablecoins, etc. — without additional requirements for foreign stablecoin issuers or transaction volume restrictions.