From January 1, 2026, the cryptocurrency industry in the United Kingdom will be officially subject to stricter oversight by tax authorities. According to the latest announcement from Her Majesty's Revenue and Customs (HMRC), all companies operating in the crypto sector will be required to comply with the obligation to collect and fully report detailed information about each user transaction.
The mandatory information to be collected includes full name, residential address, tax identification number, type of cryptocurrency used, along with the specific quantity and value of each transaction. Notably, this regulation will not only apply to individuals but will also extend to organizations such as companies, trusts, and even charitable organizations if they are involved in digital asset activities.
Companies that do not comply with the requirements or intentionally report inaccurately will face fines of up to 300 British pounds (equivalent to nearly 400 USD) for each violating user. HMRC stated that they will issue detailed guidelines in the near future. However, the agency also encourages businesses to proactively start collecting data early to ensure timely compliance when the official regulations take effect.
This important transition is part of the United Kingdom's effort to integrate the Crypto-Asset Reporting Framework (CARF) proposed by the Organization for Economic Cooperation and Development (OECD). The main goal of CARF is to enhance financial transparency, limit fraud and tax evasion, and create a balance between traditional financial markets and the rapidly developing digital asset ecosystem.
This move is also in line with the government's announced plan to build a comprehensive legal framework for the crypto sector in November 2024. Accordingly, activities such as exchange operation, lending, Staking, stablecoin issuance, and custody will be under official management. The government aims to complete the entire legal framework by the fourth quarter of 2025, to be able to apply it comprehensively from the beginning of 2026 - coinciding with the tax reporting requirements for crypto.
With this strong move, the United Kingdom is gradually reshaping the domestic cryptocurrency market towards transparency, safety, and alignment with international standards, while sending a clear signal that the digital asset industry will no longer be a "gray area" in the national tax system.
