Starting January 1, 2026, all UK cryptocurrency users will be required to provide detailed personal information to crypto service providers or face penalties under new tax reporting regulations aimed at tightening oversight of digital assets.
According to His Majesty’s Revenue and Customs (HMRC), users must submit their full name, date of birth, address, country of residence, and tax identification number to exchanges, wallet services, NFT marketplaces, and other crypto-related platforms. Failure to comply could result in fines of up to £300 ($408).
HMRC explained that the new rules are designed to link individuals’ crypto activities directly to their tax records, ensuring that the correct amount of tax is collected from digital asset transactions.
Which Crypto Services Are Affected?
The new UK crypto tax law covers all businesses classified as crypto service providers. This includes:
• Cryptocurrency exchanges
• Digital wallet applications
• Non-fungible token (NFT) marketplaces
• Crypto portfolio management services
The reporting obligation applies to any platform that facilitates digital asset transactions for UK users.
Crypto Users Urged to Prepare Early
With the new crypto tax reporting rules taking effect in 2026, UK crypto investors are being urged to start preparing by ensuring their personal details and tax records are up to date with their crypto platforms.
HMRC’s move is part of a broader global effort to crack down on crypto tax evasion and increase transparency in the rapidly growing digital asset sector.
