UK to Enforce Mandatory Crypto Trade Reporting Starting January 2026

The UK will require crypto firms to collect and report detailed customer information on every trade and transfer starting January 1, 2026, as part of a sweeping effort to strengthen tax compliance and oversight in the digital asset sector.

According to a May 14 statement from HM Revenue and Customs (HMRC), the new rules will mandate that platforms record full names, home addresses, and tax identification numbers for all users.

Each transaction must also be logged with specifics such as the cryptocurrency used and the amount transferred.

UK Crypto Reporting Rules to Cover Companies, Trusts, and Charities

The reporting obligation extends beyond individual users to include companies, trusts, and charities engaged in crypto activity.

Firms that fail to comply or submit inaccurate data may face penalties of up to £300 ($398) per user.

Authorities say they will provide additional guidance in the coming months but are urging businesses to begin preparations now.

These changes mark the UK’s adoption of the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework, which aims to standardize tax reporting obligations across jurisdictions.

“The UK is open for business — but closed to fraud, abuse, and instability,” said Chancellor of the Exchequer Rachel Reeves in April when unveiling a draft bill aimed at bringing crypto exchanges, custodians, and broker-dealers under stricter oversight.

The proposed legislation is designed to combat scams and fraud while enhancing consumer protection and boosting confidence in the sector.

The policy shift comes amid rising crypto adoption in the UK. A Financial Conduct Authority study from November 2024 found that 12% of UK adults held crypto assets, up from just 4% in 2021.

The UK just proposed a major shift in #cryptoasset regulation. 📄

The draft rules from @HMTreasury bring trading, custody, #staking and #stablecoins under existing UK financial laws, embedding crypto into the #FSMA framework rather than building a separate regime.

A few key… pic.twitter.com/rLAtrioeay

— MiCA Crypto Alliance (@MiCA_Alliance) May 9, 2025

The UK’s approach stands in contrast to the European Union’s Markets in Crypto-Assets (MiCA) regulation.

While MiCA imposes stricter rules on stablecoin issuers — including volume limits — the UK has opted for a more flexible framework.

Foreign stablecoin issuers will be allowed to operate without registration, and no cap will be imposed on transaction volumes, offering greater leeway for innovation.

UK Trade Associations Urge Special Crypto Envoy Appointment

Earlier this year, a coalition of leading UK trade associations called on Prime Minister Keir Starmer’s government to appoint a special envoy for crypto and develop a comprehensive action plan to support the digital assets and blockchain sector.

In a letter addressed to Varun Chandra, Starmer’s special adviser on business and investment, six UK digital economy organizations stressed the need for stronger strategic alignment to unlock investment, growth, and job creation within the crypto industry.

In September 2024, the UK government introduced a new bill aimed at clarifying the status of digital assets, including non-fungible tokens (NFTs), cryptocurrencies, and carbon credits, as “things” and “personal property” under the nation’s property laws.

The UK has been among the countries that have ramped up regulatory efforts following some high-profile bankruptcies last year.

The FCA oversees crypto activities, focusing on anti-money laundering measures and consumer protection.