UK’s 2026 Crypto Crackdown: Firms Must Report All User Transactions or Face £300 Fines
Starting January 2026, UK crypto firms must report detailed user transactions or face fines up to £300 per user, aligning with global tax transparency efforts.
In a significant regulatory development, the United Kingdom will mandate all crypto firms operating within its jurisdiction to collect and report comprehensive user and transaction data starting January 1, 2026. This initiative aligns with the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), aiming to enhance global tax transparency and combat evasion in the digital asset space.
Under the new rules, crypto firms must gather detailed information, including users’ full names, home addresses, tax identification numbers, and specifics of each transaction—such as the type of cryptocurrency, amount, and transaction timestamp. These requirements apply to both individual and entity users, encompassing domestic and foreign exchanges serving UK residents.
Non-compliance or inaccurate reporting may result in penalties of up to £300 per user, emphasizing the importance of accurate data collection and reporting. The UK government encourages crypto firms to begin data collection processes ahead of the enforcement date to ensure readiness.
This regulatory shift signifies the UK’s commitment to establishing a robust framework for digital assets, balancing industry growth with consumer protection and financial integrity.
