Beginning January 1, 2026, crypto companies in the UK will be obliged to collect and submit full user and transaction data to the government.
This is part of a new tax policy aimed at combating fraud and tax evasion in the digital asset sector.
New Requirements for Crypto Businesses
According to a statement from His Majesty’s Revenue and Customs (HMRC), all crypto platforms operating in the country will be required to collect the client’s full name, residential address, and tax identification number. All information must be accompanied by details of each transaction — from the name of the cryptocurrency to the exact transfer amount.
The new reporting obligations will apply not only to individuals but also to companies, trusts, and charitable organizations involved in digital asset transactions.
Failure to comply with the rules or submission of incorrect data may result in a fine of up to £300 (~$400) per user.
Transition to a Global Standard
These measures are connected to the UK’s decision to implement the Crypto Asset Reporting Framework — an international tax reporting standard for digital assets developed by the Organisation for Economic Co-operation and Development (OECD). The initiative aims to unify requirements across countries and increase transparency in the industry.
UK Chancellor Rachel Reeves previously stated that the country is open for business but closed to “fraud, abuse, and instability.” According to her, the new rules are intended to strengthen trust in the industry and protect consumers.
HMRC plans to publish additional guidance on the implementation of the rules in the coming months and is already urging crypto companies to begin preparations.
Growing Interest in Crypto in the United Kingdom
According to a study by the UK Financial Conduct Authority (FCA) from November 2024, 12% of adults in the country own crypto assets — three times more than in 2021 (4%).
In response to this trend, the government has intensified regulatory initiatives. In September 2024, a bill was introduced recognizing cryptocurrencies, NFTs, and carbon credits as “personal property” and “objects” under British law.
In addition, a coalition of industry associations called on Prime Minister Keir Starmer’s cabinet to appoint a special crypto envoy and develop a strategic plan to support the blockchain sector.
Contrast With the EU Approach
The difference between UK and EU regulations is also noted. While the EU’s MiCA regulation imposes restrictions on the issuance of stablecoins and mandates licensing requirements, the UK has chosen a more flexible path. Foreign issuers of stablecoins will be able to operate without mandatory registration, and there will be no restrictions on transaction volumes.
This decision is aimed at fostering innovation and maintaining the country’s competitiveness amid growing global interest in cryptocurrencies.
At the current stage, oversight of the crypto industry in the UK is carried out by the FCA, which focuses on anti-money laundering measures and consumer protection.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.