UK Crypto Assets companies will need to report every user and every transaction, or face severe penalties.

GateUser-6433627c · 2025-05-17T12:04:07+00:00

The UK will introduce new regulations on January 1, 2026, requiring encryption asset companies to collect and report user and transaction data according to CARF standards, in order to enhance industry transparency and combat tax evasion. The new regulations require crypto platforms to record user identification information, transaction details, and apply to overseas companies servicing UK clients. The maximum fine for non-compliance is £300.

GateUser-6433627c

2025-05-17 12:04:07

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On May 17, DL News reported that starting January 1, 2026, cryptocurrency asset companies operating in the UK will be required to collect and report detailed user and transaction data under a new regulation introduced by the UK tax authority. This change stems from the UK’s adoption of the Cryptocurrency Asset Reporting Framework (CARF) — a global standard aimed at combating tax evasion and aligning the transparency of the cryptocurrency industry with that of the banking system. According to the new regulation, cryptocurrency platforms must identify each user and record their legal identification information, address, and taxpayer identification number. Additionally, platforms must record every transaction involving UK users or users from other CARF participating countries, including details such as transaction amount, asset type, quantity, and nature of the transfer. These requirements also apply to overseas companies providing services to UK clients. If the reported information is incorrect or incomplete, each user may face a fine of up to £300.

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