UK Mandates Crypto Data Sharing From 2026

In a significant move towards enhancing tax transparency in the digital asset sector, the UK's His Majesty’s Revenue and Customs (HMRC) has mandated that all digital asset service providers must share user data starting from January 1, 2026. This directive follows the adoption of the OECD’s Cryptoasset Reporting Framework (CARF), which sets global standards for tax transparency in digital assets.

Under the new rules, all UK-based crypto service providers, including exchanges, brokers, and wallet operators, will be required to collect and report detailed information on their users. However, the reporting obligation will be limited to users who are tax residents in the UK or in other countries that have adopted CARF. The data to be collected includes the customer’s full name, address, country of residence, wallet addresses, and a comprehensive breakdown of crypto transactions, including transfers, disposals, gross proceeds, and fair market values of the digital assets.

The first report must be filed by May 31, 2027, covering transaction data for the 2026 calendar year. Subsequently, service providers will be required to submit annual reports by May 31 for the previous year. If a firm has no reportable data in a given year, it will not be required to file a report. Failure to comply with these requirements could result in penalties of up to £300 per user. HMRC has stated that sanctions will apply for non-reporting, late submissions, or if the submitted data is incomplete, inaccurate, or unverified.

This reporting framework is part of a broader effort by the UK to bring digital assets under formal financial regulation. In April, the UK Treasury introduced a draft amendment to the Financial Services and Markets Act 2000. The proposed changes aim to regulate key areas of the crypto sector, including stablecoins, staking services, and digital asset custody. Once enacted, these rules will place crypto firms under the oversight of the Financial Conduct Authority (FCA), requiring them to secure FCA authorization and comply with standards that govern traditional financial services. The authorities argue that these changes are necessary to boost investor confidence, support the growth of the crypto industry, and protect UK investors.