Catenaa, Tuesday, May 20, 2025-The United Kingdom (UK) will require crypto firms to begin reporting detailed customer data for all trades and transfers starting January 1, 2026, as part of new tax compliance rules aligned with international standards, authorities announced.
According to HM Revenue and Customs, the new mandate compels platforms to collect full names, home addresses, tax identification numbers, and transaction details-including the type and amount of cryptocurrency-on every customer trade. The regulation will apply to individuals, companies, trusts and charities active in digital asset activity.
Noncompliance could lead to fines of up to £300 ($398) per customer. HMRC stated that further technical guidance will be issued but urged companies to begin preparations immediately.
The measure aligns the UK with the OECD’s Cryptoasset Reporting Framework, aiming to create a consistent global standard for taxing digital assets.
Chancellor Rachel Reeves previously emphasized the UK’s dual goals of encouraging innovation while combating fraud and instability.
Unlike the European Union’s MiCA framework, which imposes caps and stricter conditions on stablecoin issuers, the UK is opting for a more open approach. Foreign issuers will not face registration requirements or volume limits, giving the market room to grow.
The policy comes as crypto ownership in the UK rises. An FCA study in late 2024 reported that 12% of adults held digital assets-triple the figure from 2021.
Earlier this year, six UK digital economy organizations called on the government to appoint a crypto envoy and implement a national strategy to support blockchain innovation and job creation.
