Source: Cointelegraph
Original text: (UK cryptocurrency companies must report each customer transaction data starting in 2026)
The UK government stated that as part of a broader effort to improve cryptocurrency tax reporting, UK cryptocurrency companies will need to collect and report data on each customer transaction and transfer starting from January 1, 2026.
According to a statement from the UK Revenue and Customs on May 14, the data that needs to be collected and reported for each transaction includes the user's full name, home address, and tax identification number, as well as the cryptocurrency used and the amount transferred.
Information related to companies, trusts, and charities trading on cryptocurrency platforms will also need to be reported.
Failure to comply with the regulations or report inaccurately could result in fines of up to £300 (approximately $398.4) per user. The UK Revenue and Customs stated that it would inform companies in due course on how to comply with the upcoming measures.
However, UK authorities encourage cryptocurrency companies to start collecting data now to ensure compliance readiness.
This new regulation is part of the UK's integration of the Organisation for Economic Co-operation and Development's Cryptoasset Reporting Framework, aimed at improving the transparency of cryptocurrency tax reporting.
These changes reflect the UK government's goal of establishing a stronger regulatory framework that supports industry growth while ensuring consumer protection.
UK Chancellor Rachel Reeves also proposed a draft bill at the end of April that would bring cryptocurrency exchanges, custodians, and brokerage firms under its regulatory scope to combat scams and fraud.
Reeves stated at the time: "Today's announcement sends a clear signal: the UK is open for business, but closed to fraud, abuse, and instability."
According to a study by the Financial Conduct Authority last November, 12% of UK adults owned cryptocurrency in 2024, a significant increase from 4% in 2021.
The UK's approach to integrating cryptocurrency rules into its existing financial framework contrasts with the EU's method, which introduced a new Markets in Crypto-Assets Regulation (MiCA) last year.
According to the MiCA Crypto Alliance, a key difference is that the UK will allow foreign stablecoin issuers to operate in the UK without registration.
Additionally, unlike the EU's potential approach to impose controls on stablecoin issuers to manage systemic risks, the UK has no volume limits on stablecoin transactions.
Related reading: The MiCA regulations in Europe have been initiated, but can the crypto industry keep up?