The United Kingdom will require crypto companies to report on every user starting January 1, 2026. This move is part of efforts to integrate crypto assets into the existing regulatory framework.
This is reported by Finway
All cryptocurrency companies serving UK citizens will be obligated to provide Her Majesty’s Revenue and Customs (HMRC) with detailed information about users and transactions. According to the new requirements, companies must collect and submit the following data:
- full name, address, and tax identification number (TIN);
- information about all transactions, including the type and amount of assets, their value, and the nature of the transaction.
These obligations apply to both domestic and foreign platforms operating with British clients. Penalties of up to £300 per user are imposed for violations or incomplete reporting.
Although mandatory reporting will not commence until 2026, UK authorities are urging companies to start data collection now to adapt their processes and infrastructure to the new requirements.
Objectives of Legislative Changes
The UK government aims to combine regulation with support for financial technologies. In April, during UK Fintech Week, Finance Minister Rachel Reeves announced plans for a bill that will integrate exchanges, custodial services, and other participants in the crypto market into a unified regulatory framework.
“Robust rules in the cryptocurrency sector will enhance investor confidence, promote fintech development, and protect citizens across the country.”
Additionally, the UK is considering the establishment of a transatlantic regulatory “sandbox” for digital assets in collaboration with the United States.
Comparison with EU Regulation
The UK’s new approach differs from the MiCA regulation adopted in the European Union. Instead of creating a separate framework, the country will integrate cryptocurrencies into the already existing financial legislation. This pertains to lending, staking, stablecoins, and other aspects without additional requirements for foreign stablecoin issuers or transaction volume restrictions.
It is worth noting that the UK’s Financial Conduct Authority has initiated a public discussion on legislative initiatives for the crypto market in the country.