United Kingdom crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026. This is part of a broader effort to improve crypto tax reporting, according to the UK government. The UK Revenue and Customs department announced this initiative on May 14.
The collected data will include the user's full name, home address, and tax identification number for every transaction. Details of companies, trusts, and charities transacting on crypto platforms will also need to be reported. Failure to comply or inaccurate reporting may incur penalties of up to 300 British pounds ($398.4) per user.
UK authorities are encouraging crypto firms to start collecting data now to ensure compliance readiness. This new rule is part of the UK's integration of the Organisation for Economic Development's Cryptoasset Reporting Framework. The changes reflect the UK government's aim to establish a more robust regulatory framework that supports industry growth while ensuring consumer protection.
In late April, UK Chancellor Rachel Reeves introduced a draft bill to bring crypto exchanges, custodians, and broker-dealers within its regulatory reach to combat scams and fraud. A study from the UK's Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024. This is a significant increase from the 4% reported in 2021.
The UK will allow foreign stablecoin issuers to operate in the UK without needing to register. There will also be no cap on stablecoin volumes, unlike the EU's approach, which may impose controls on stablecoin issuers to manage systemic risks.
This article is based on our author's analysis of materials taken from the following resource: Cointelegraph.