Starting January 1, 2026, the UK will require all cryptocurrency firms operating in the country to report detailed data on every customer transaction.
This includes collecting and submitting users' full names, home addresses, tax identification numbers, and comprehensive information about each trade or transfer, such as the cryptocurrency type and amount moved.
The reporting obligation also extends to companies, trusts, and charities transacting on crypto platforms.
These measures are part of the UK’s adoption of the global Cryptoasset Reporting Framework (CARF), aimed at enhancing tax transparency and combating tax evasion in the crypto sector.
Firms that fail to comply or provide inaccurate data may face penalties of up to £300 per user.
The UK government encourages crypto firms to begin collecting this data immediately to ensure readiness for the 2026 enforcement.
This regulatory push also includes foreign crypto platforms serving UK customers, bringing them under the same reporting requirements.
The initiative reflects the UK’s broader effort to create a robust regulatory framework that supports industry growth while protecting consumers and combating fraud.
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