- UK crypto firms must begin reporting detailed customer information to HM Revenue & Customs (HMRC) starting January 1, 2026.
- Providers must gather personal data such as names, addresses, and taxpayer details for UK customers, and tax identification numbers for non-UK residents.
- Firms face fines of $400 per affected customer for failing to accurately collect or report data.
- Transaction details, including the value, type, and quantity of each crypto asset traded, must also be reported.
- The new rules are intended to aid HMRC in addressing suspected tax evasion and improving oversight of digital asset transactions.
Starting January 1, 2026, crypto service providers in the UK will be required to collect and report specific information about their customers to HM Revenue & Customs (HMRC). Companies must submit up to six details per customer, covering both personal data and transaction information, or face a fine of $400 per customer.
In accordance with new guidance, providers must collect the name, date of birth, address, country of residence, National Insurance number, or Unique Taxpayer Reference for UK residents. For customers outside the UK, the tax identification number and its issuing country are required. When the customer is a company, trust, or charity, the service provider must record the legal business name, main business address, registration number, and, for foreign entities, their tax identification number.
Transaction-related requirements include tracking and submitting the value, type, specific cryptocurrency traded, and the amount involved. Failure to provide this data accurately could result in a $400 penalty for each customer account with missing or incorrect information.
Seb Maley, CEO of tax insurance company Qdos, stated that “HMRC’s casting its net far and wide as it looks to crack down on suspected tax avoidance and non-compliance among cryptocurrency holders in the UK.” Maley explained, “By collecting the personal information of those buying and selling crypto — along with the values being exchanged — HMRC will know how much tax should be paid on these assets.”
According to HMRC and Qdos, these measures will help close gaps in reporting as digital asset transactions become more common. Discrepancies between taxpayers’ self-reported income and platform-reported activity could trigger investigations by HMRC. The government hopes this will bolster efforts to police the digital economy and fight financial crime.
An estimated 12% of UK adults currently own or trade crypto assets, meaning the new rules could impact millions of users. More details about the reporting requirements are available through the official HMRC guidance here.
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