UK to Require Crypto Firms to Report All User Data From 2026

UK to Require Crypto Firms to Collect and Report Comprehensive Customer Data Starting January 2026

  • The United Kingdom will require crypto firms to collect and report detailed customer data for every transaction starting January 1, 2026.
  • User information such as full name, address, and tax identification number must be included for every crypto trade or transfer.
  • Companies, trusts, and charities active on crypto platforms will also be subject to the new reporting requirements.
  • Penalties for non-compliance or incorrect reporting can reach up to $398 per user.
  • The UK’s rules differ from the European Union’s approach, with fewer restrictions on foreign stablecoin issuers operating in the UK.

Crypto companies in the United Kingdom must begin collecting and reporting comprehensive data on every customer trade and transfer starting on January 1, 2026, according to a new directive from the UK government. The rule aims to strengthen tax reporting for digital assets and covers all types of cryptocurrency activities within the country.

- Advertisement -

The UK government stated that all customer transactions must include the user’s full name, home address, and tax identification number, along with details about the cryptocurrency used and the amount involved. This information will apply to individuals, companies, trusts, and charities using crypto platforms. Her Majesty’s Revenue and Customs (HMRC) announced on May 14 that it would provide further guidance to help companies comply with the updated requirements.

The changes come with enforcement penalties, as HMRC noted that firms could face fines of up to $398 per user for non-compliance or inaccurate reporting. UK authorities have recommended that crypto firms begin collecting necessary data as soon as possible to ensure they are ready by the official deadline.

These new obligations are part of the UK’s adoption of the Organisation for Economic Development’s Cryptoasset Reporting Framework, designed to improve transparency and consumer protection in the crypto sector. UK Chancellor Rachel Reeves recently introduced a draft bill to bring crypto exchanges, custodians, and brokers under direct regulatory oversight to combat scams and fraud. “Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” Reeves said.

A study by the Financial Conduct Authority (FCA) in November 2023 found that 12% of UK adults owned cryptocurrency in 2024, compared to 4% in 2021.

The UK’s strategy for integrating crypto regulation uses existing financial rules, differing from the European Union’s Markets in Crypto-Assets Regulation (MiCA) approach. Notably, the UK will permit foreign stablecoin issuers to operate domestically without registration and will not cap the volumes of stablecoins traded, unlike some restrictions under the EU system.

For more details, visit the HMRC’s official guidance.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Solo Bitcoin Miner Strikes Block, Earns $373K Amid Rising Difficulty

A solo Bitcoin miner earned $372,773 by mining block 907283 on Saturday.The block contained...

Coinbase Base App Rebrand Sparks Zora Token and SocialFi Surge

Coinbase rebranded its Wallet to the Base App on July 16, sparking a surge...

Solana Holds $177 Support as ETF Delays Weigh, Eyes $205 Rebound

Solana (SOL) saw its price fall by 3.2% this week after a strong rise...

Astronomer Turns Viral CEO Kiss Cam Scandal Into Data-Driven Win

Astronomer, a data infrastructure company, faced a viral public incident involving its CEO and...

Japan’s Crypto Bottleneck: Regulation, Not Taxes, Drives Talent Out

Regulatory approval delays are causing crypto startups to leave Japan.A proposed 20% flat tax...

Must Read

10 BEST Companies to Buy Hosting With Bitcoin And Crypto

If you are looking to buy hosting with bitcoin or cryptocurrency then you've come to the right place.I've done the research for you...