Starting 1 January 2026, UK-based cryptocurrency firms will be legally required to collect and report detailed transaction data from their customers, in a move designed to tighten crypto tax compliance, HM Revenue and Customs (HMRC) announced on 14 May.
Under the new regulations, crypto platforms must log key user details — including full name, residential address, tax identification number, type of digital asset, and the transaction amount — for every transaction conducted.
The rule will also apply to businesses, charities, and trusts using cryptocurrency services.
The measure aligns the UK with global efforts to strengthen transparency in the digital asset sector and combat tax evasion through undeclared crypto activity.
Firms Face Fines for Non-Compliance
Failure to adhere to the new reporting obligations or providing incorrect information could result in penalties of up to £300 per individual case.
HMRC has pledged to issue detailed compliance guidance to help firms navigate the new rules ahead of their enforcement date.
The announcement underscores growing regulatory scrutiny of digital assets, as tax authorities aim to close gaps in reporting and ensure accurate declarations of crypto-related income and capital gains.
