Starting January 1, 2026, the UK will mandate that cryptocurrency firms gather and report comprehensive customer information for each trade and transfer, a move aimed at enhancing tax compliance and oversight within the digital asset industry.
As disclosed in a May 14 announcement from HM Revenue and Customs (HMRC), the forthcoming regulations will require platforms to document users’ full names, home addresses, and tax identification numbers.
Moreover, every transaction must detail elements such as the type of cryptocurrency involved and the amount being transferred.
Scope of UK Crypto Reporting Rules
The new reporting requirements will apply not only to individual users but also encompass companies, trusts, and charities that engage in cryptocurrency activities.
Firms that fail to comply or provide inaccurate information may incur fines of up to £300 ($398) per individual user.
Authorities have indicated that further guidance will be provided in the months ahead but are encouraging businesses to start preparing now.
This initiative aligns the UK with the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework, which aims to harmonize tax reporting responsibilities across different jurisdictions.
“The UK is open for business — but closed to fraud, abuse, and instability,” stated Chancellor of the Exchequer Rachel Reeves in April while presenting a draft bill intended to enhance oversight of crypto exchanges, custodians, and broker-dealers.
The proposed legislation seeks to address scams and fraudulent activities while amplifying consumer protection and fostering trust in the crypto sector.
This policy adjustment comes in response to increasing cryptocurrency adoption across the UK. A study by the Financial Conduct Authority from November 2024 indicated that 12% of UK adults owned crypto assets, a significant rise from just 4% in 2021.
The UK just proposed a major shift in #cryptoasset regulation.
The draft rules from @HMTreasury bring trading, custody, #staking and #stablecoins under existing UK financial laws, embedding crypto into the #FSMA framework rather than building a separate regime.
A few key… pic.twitter.com/rLAtrioeay
— MiCA Crypto Alliance (@MiCA_Alliance) May 9, 2025
The UK’s regulatory strategy contrasts with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
While MiCA enforces stricter regulations on stablecoin issuers, including volume restrictions, the UK is pursuing a more adaptable framework.
Under this framework, foreign stablecoin issuers will be permitted to operate without registration, and there will be no limits on transaction volumes, fostering an environment conducive to innovation.
Calls for a Dedicated Crypto Envoy
In a letter to Varun Chandra, Starmer’s special adviser on business and investment, six organizations focused on the UK digital economy highlighted the necessity for stronger strategic alignment to unlock investment, spur growth, and facilitate job creation within the crypto space.
In September 2024, the UK government proposed a new bill aimed at clarifying the legal status of digital assets such as non-fungible tokens (NFTs), cryptocurrencies, and carbon credits as “things” and “personal property” within the nation’s property laws.
Responding to notable recent bankruptcies, the UK has noticeably intensified its regulatory efforts. The Financial Conduct Authority (FCA) is tasked with overseeing cryptocurrency activities with an emphasis on anti-money laundering measures and consumer protection.
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