Starting in 2026, UK-based cryptocurrency businesses will be subject to much stricter reporting rules. This means they’ll have to collect and hand over significantly more data on their users and transactions to the UK tax authority, HMRC.
What’s Changing?
The new rules, part of a global initiative called the Crypto-Asset Reporting Framework (CARF), aim to crack down on tax evasion involving cryptocurrencies. This means UK crypto firms – including exchanges, brokers, and other businesses dealing with digital assets – will need to report a wide range of information.
Data Collection Requirements
This includes personal details like names, birth dates, addresses, and countries of residence for individual users, and similar information for business users (companies, charities, etc.). For every transaction, firms must record the type of cryptocurrency, the amount, and the value. This applies to transactions involving users both in the UK and other countries participating in CARF.
Penalties for Non-Compliance
HMRC is stressing the importance of accurate reporting. There will be hefty fines – up to £300 (around $399) per user – for inaccurate, incomplete, or unverified reports. So, crypto businesses need to make sure their data collection and reporting processes are spot-on.
