The United Kingdom is implementing new requirements for crypto companies to ensure transparency in the cryptocurrency market. Starting January 1, 2026, all cryptocurrency businesses operating in the UK or serving its citizens will be obligated to report to tax authorities on every user and every transaction.
This is reported by Business • Media
These rules will be enforced by Her Majesty’s Revenue and Customs (HMRC) as part of the global Cryptoasset Reporting Framework (CARF) initiative. The main goal of these changes is to enhance transparency in the crypto market and combat tax evasion, which will help align reporting in the crypto sphere with banking standards.
Reporting Requirements for Crypto Companies
According to the new rules, companies will be required to collect and submit the following information about users to HMRC:
- full name, address, and tax identification number (TIN);
- data on all transactions: type and amount of assets, value, and nature of the operation.
These requirements apply to both domestic and foreign platforms that work with British clients. Penalties of up to £300 per user are imposed for violations or insufficient reporting.
Although mandatory reporting will not begin until 2026, UK authorities recommend that companies start collecting data now. This will allow them to adapt their processes and infrastructure to the new requirements.
Support for Financial Technology and Collaboration with the USA
Thus, the UK government aims to connect regulation with support for financial technology. 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.
“Robust rules in the cryptocurrency sector will enhance investor trust, foster fintech development, and protect citizens across the country,” emphasized Reeves.
The UK is also considering the establishment of a transatlantic regulatory “sandbox” for digital assets in collaboration with the USA. This 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 related to lending, staking, and stablecoins, without additional requirements for foreign stablecoin issuers or transaction volume restrictions.
It is worth noting that the UK’s Financial Conduct Authority has initiated a public discussion on legislative initiatives for the crypto market in the country.