- Crypto firms must report user and transaction data starting in 2026.
- Penalties of up to £300 per user apply for faulty or missing data.
- The UK’s open approach differs slightly from the EU’s MiCA model.
The United Kingdom is starting to make more room for crypto, but it wants receipts for every user, trade, and transfer.
Beginning on the first day of 2026, cryptoasset firms operating in the country will be required to collect and report detailed user and transaction data under a new framework being rolled out by the UK tax authority.
The change stems from the UK’s adoption of the Cryptoasset Reporting Framework — a global standard designed to crack down on tax evasion and bring crypto transparency in line with banking.
Platforms will need to identify every user and record their legal details, addresses, and tax identification numbers.
They’ll also be required to document every transaction involving UK users or those in other CARF-participating countries, including the value, asset type, quantity, and nature of the transfer.
The requirements even extend to foreign firms serving UK clients, and penalties of up to £300 per user will apply for incorrect or incomplete reporting.
While the rules won’t be enforced until 2026, authorities are encouraging firms to start collecting data now to ensure compliance readiness.
Open approach
The new regime is part of a broader government campaign to tighten crypto regulation while promoting the sector’s growth.
In a speech during UK Fintech Week at the end of April, Chancellor Rachel Reeves announced draft legislation to bring crypto exchanges, dealers, and custodians inside the regulatory perimeter, promising stricter oversight of consumer protection and operational resilience.
“Robust rules around crypto will boost investor confidence, support the growth of fintech and protect people across the UK,” Reeves said.
The UK also signalled closer regulatory alignment with the US, floating the idea of a transatlantic sandbox for digital assets as part of its Plan for Change economic agenda.
MiCA contrasts
The UK’s approach also stands apart from the European Union’s new MiCA rules.
According to the MiCA Crypto Alliance, the UK is choosing to fold crypto into its existing financial framework rather than build an entirely separate system.
That includes covering lending, borrowing, staking, and stablecoins under traditional financial law, without requiring overseas stablecoin issuers to be authorised in the UK or imposing volume caps.
“This signals a more open, globally-aligned approach than the EU’s focus on localisation and bloc-level control,” the group wrote on X, adding that much will depend on how UK regulators enforce the final rules.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
