UK to Require Crypto Firms to Report All Customer Transactions from 2026

The United Kingdom government has announced that crypto companies operating in the country must begin reporting every customer transaction starting January 1, 2026. The move is part of a broader strategy to strengthen tax transparency and compliance within the rapidly growing digital asset sector.

What the New Rule Requires

Under the new regulations, firms will be required to collect and report the following details for each transaction:

• Customer’s full name

• Home address

• Tax identification number (TIN)

• Cryptocurrency used

• Transaction amount

The rules will apply to individuals, companies, trusts, and charities interacting on crypto platforms. Non-compliance or inaccurate reporting could result in penalties of up to £300 ($398) per customer.

The UK’s Revenue and Customs department confirmed in a May 14 statement that further guidance will be provided to help businesses comply. However, it is urging crypto firms to begin collecting this data immediately to ensure preparedness.

Part of a Global Tax Transparency Framework

The policy aligns with the OECD's Cryptoasset Reporting Framework (CARF) — a global initiative to enhance tax transparency in digital asset transactions. The UK’s adoption of the framework aims to ensure that crypto activity is treated with the same tax scrutiny as traditional finance.

The plan is part of the UK’s vision to build a robust and innovation-friendly regulatory framework, one that fosters responsible growth while cracking down on fraud and abuse.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” said UK Chancellor Rachel Reeves, who also introduced a draft bill in April to regulate crypto exchanges, custodians, and broker-dealers more strictly.

Growing Adoption and Market Impact

The urgency of the new reporting rules is underscored by rising crypto adoption in the UK. A study by the Financial Conduct Authority (FCA) in November 2024 found that 12% of UK adults held crypto, up sharply from 4% in 2021.

Source: MiCA Crypto Alliance

UK vs. EU: A Different Approach to Crypto Regulation

The UK’s crypto framework stands in contrast to the European Union’s Markets in Crypto-Assets Regulation (MiCA). Key differences include:

• The UK will allow foreign stablecoin issuers to operate without local registration.

• There will be no volume cap on stablecoins, unlike in the EU, where such limits may be imposed to manage systemic risk.

These differences reflect the UK’s approach of integrating crypto rules into its existing financial system rather than introducing a standalone regulatory regime.