From January 1, 2026, UK cryptocurrency companies will be required to collect and report customer transaction data as part of efforts to improve crypto tax reporting, the UK government announced on May 14.
This includes collecting details such as the user's full name, address and tax ID number for each transaction, as well as the type of cryptocurrency and amount.
UK HM Revenue and Customs stated that details of companies, trusts and charities using cryptocurrency platforms must also be reported.
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Failure to comply or incorrect reporting could result in penalties of up to £300 ($398.4) per user. The department will provide guidance on compliance with these measures.