Michaela
The UK government has introduced new guidelines requiring crypto firms to collect and report detailed data on all customer trades and transfers, aiming to enhance transparency and improve tax compliance within the sector.
According to a guidance issued by HM Revenue and Customs (HMRC), the mandatory collection of user and transaction data by crypto firms will take effect on January 1, 2026. However, the government is encouraging companies to begin gathering this information in advance to ensure a smooth transition to the new reporting requirements.
Crypto firms will be required to collect and report detailed information for each transaction, including the user’s full name, home address, and tax identification number. In addition, the type of cryptocurrency used, the amount transferred, and identifying details of entities such as companies, trusts, and charities involved in crypto transactions must also be disclosed.
“This is because the UK is introducing the Organisation for Economic Development (OECD) Cryptoasset Reporting Framework (CARF), and extending it to include domestic reporting,” the guidance wrote.
Firms that fail to comply with the new reporting requirements or submit inaccurate information may face penalties of up to £300 (approximately $398) per user. According to the guidance, crypto companies may also be required to submit annual reports to HMRC, depending on the type of data collected.
UK Targets Crypto Firms with New Regulatory Framework
In late April, UK Chancellor Rachel Reeves introduced a proposed framework for regulating crypto assets, signaling a move to strengthen consumer safeguards and boost trust in the digital asset market. The draft legislation marks a significant step in the government’s efforts to bring more oversight to the fast-evolving crypto space.
“Firms offering services for cryptoassets like Bitcoin and Ethereum will be subject to new, clear rules, boosting investor confidence and driving growth through the Plan for Change,” Reeves stated in an April 29 official press release, outlining the government’s regulatory vision.
The proposed crypto legislation expands on the UK Treasury’s 2023 consultation, which outlined a strategy to bring a broad range of crypto-related activities—such as trading platforms, wallet providers, and crypto lending—under formal financial regulation.
The initiative reflects the government’s push to align the crypto sector with existing financial standards, aiming to reduce risks for consumers and establish clearer compliance expectations for industry participants.
As the UK moves to integrate digital assets into its financial oversight framework, industry participants will be watching closely to see how these evolving regulations shape the future of crypto in the region.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
