Starting January 1, 2026, UK crypto firms will be mandated to report data on every customer transaction as part of a government initiative aimed at enhancing crypto tax reporting practices. This includes collecting detailed customer information such as full names, home addresses, and tax identification numbers for each transaction, along with the specific cryptocurrency used and the amounts involved. Companies, trusts, and charities will also need to provide their legal business names and addresses. Non-compliance or inaccurate reporting could lead to penalties of up to 300 British pounds per user. The UK Revenue and Customs department emphasized the importance of starting data collection now to ensure compliance ahead of time. These changes are a part of the UK's integration of the Organisation for Economic Cooperation and Development's Cryptoasset Reporting Framework to promote transparency in crypto tax reporting and to establish a robust regulatory environment supporting industry growth while ensuring consumer protection.

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