UK to Enforce New Crypto Reporting Rules in 2026

According to BlockBeats, starting January 1, 2026, cryptocurrency companies operating in the United Kingdom will be required to collect and report detailed user and transaction data under a new regulation introduced by the UK tax authority. This change follows the UK's adoption of the Crypto-Asset Reporting Framework (CARF), a global standard aimed at combating tax evasion and aligning the transparency of the crypto industry with that of the banking sector. Under the new rules, crypto platforms must identify each user and record their legal identity information, address, and taxpayer identification number. Additionally, platforms must document every transaction involving UK users or users from other CARF-participating countries, detailing the transaction amount, asset type, quantity, and nature of the transfer. These requirements also apply to overseas companies providing services to UK customers. In cases of incorrect or incomplete reporting, each user could face a fine of up to £300.