UK Crypto Firms Face New Reporting Rules Starting 2026

Starting from January 1, 2026, crypto companies in the United Kingdom will be required to collect and report detailed data from every customer trade and transfer. This new regulation is part of a broader effort to enhance crypto tax reporting and transparency. The UK Revenue and Customs department has outlined that companies must gather and report comprehensive information for each transaction, including the user’s full name, home address, tax identification number, the type of cryptocurrency used, and the amount transferred. Additionally, the legal business names and addresses of companies, trusts, and charities involved in these transactions will also need to be reported.

Non-compliance or inaccurate reporting may result in penalties of up to 300 British pounds per user. The UK Revenue and Customs department has indicated that it will provide further guidance to companies on how to comply with these new measures in the coming months. However, authorities are encouraging crypto firms to begin collecting the necessary data immediately to ensure they are prepared for the upcoming changes.

This new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework, aimed at improving transparency in crypto tax reporting. The changes reflect the UK government’s goal to establish a more robust regulatory framework that supports industry growth while ensuring consumer protection. The UK’s approach to integrating crypto rules into its existing financial framework contrasts with the European Union’s new Markets in Crypto-Assets Regulation framework, which was introduced last year. One key difference is that the UK will allow foreign stablecoin issuers to operate without needing to register, and there will be no cap on stablecoin volumes, unlike the EU’s approach, which may impose controls on stablecoin issuers to manage systemic risks.

In late April, UK Chancellor Rachel Reeves introduced a draft bill to bring crypto exchanges, custodians, and broker-dealers within the regulatory reach to combat scams and fraud. Reeves emphasized that the UK is open for business but closed to fraud, abuse, and instability. A study from the UK’s Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024, a significant increase from the 4% reported in 2021. This highlights the growing importance of crypto in the UK’s financial landscape and the need for stringent regulatory measures to ensure transparency and consumer protection.