UK to require crypto firms to report every customer transaction
Beginning January 1, 2026, UK crypto companies must collect and report detailed customer data for every trade and transfer, including full names, addresses, tax identification numbers, cryptocurrency types, and transaction amounts. Companies, trusts, and charities involved in crypto transactions must also be reported. Non-compliance or inaccurate reporting may result in penalties of up to £300 ($398.4) per user. The UK Revenue and Customs department will provide guidance on compliance, urging firms to start data collection now. This initiative aligns with the Organisation for Economic Development’s Cryptoasset Reporting Framework to enhance transparency in crypto tax reporting. UK Chancellor Rachel Reeves introduced a draft bill to regulate crypto exchanges and custodians to combat fraud. A study indicated that 12% of UK adults owned crypto in 2024, up from 4% in 2021. The UK's regulatory approach differs from the EU's Markets in Crypto-Assets Regulation, allowing foreign stablecoin issuers to operate without registration and imposing no volume caps on stablecoins.
