The UK government will require all cryptocurrency firms within its jurisdiction to report comprehensive details on every customer transaction, effective January 1, 2026.
This mandate is intended to improve tax compliance and strengthen regulatory oversight within the expanding cryptocurrency industry.
HM Revenue and Customs (HMRC) requires crypto platforms to collect and report detailed information on each trade and transfer by users. This information includes the user’s full name, home address, tax identification number, cryptocurrency details, and transaction amounts. The requirement applies to all UK tax residents and taxpayers from countries involved in the Cryptoasset Reporting Framework (CARF), established by the Organisation for Economic Co-operation and Development (OECD).
Crypto firms must file their first reports by May 31, 2027, covering transactions from January 1 to December 31, 2026. Subsequent annual reports will be due by May 31, detailing the previous calendar year’s activity. Reports will be submitted through a dedicated online service provided by the UK government, which is expected to launch before the reporting deadline.
HMRC has warned that companies failing to comply with the new reporting requirements could face fines of up to £300 per user affected. Penalties may be imposed for missing reports, late submissions, or providing incomplete or inaccurate data.
This reporting mandate is part of the UK’s effort to align with global crypto tax and regulatory standards. By adopting the OECD’s CARF, the UK aims to increase transparency and combat tax evasion in the crypto space.
In parallel, the Financial Conduct Authority (FCA) is preparing to introduce comprehensive crypto regulations by 2026. These regulations will focus on market transparency, preventing abuse, and overseeing decentralized finance (DeFi) activities while supporting innovation in the digital asset industry. Industry groups are urging the UK government to actively support the digital assets sector by appointing a dedicated envoy to develop a national strategy. In contrast, the government is mandating crypto firms to report all customer transactions starting in 2026.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
