UK to Enforce New Crypto Transaction Reporting

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Beginning in January 2026, crypto firms in the UK must report user transactions directly to tax authorities. This regulatory change aims to enhance financial transparency and combat tax evasion in the digital asset space.

Aligning with global efforts to tighten cryptocurrency oversight, this move addresses rising adoption among retail and institutional investors.

The new UK framework imposes real consequences for non-compliance. Crypto platforms failing to report user activity risk £300 penalties per user, along with potential further enforcement actions for repeated violations.

This requirement applies to both domestic and foreign exchanges serving UK residents, mandating firms to provide data on trades, transfers, and holdings to help HMRC track taxable gains and enforce compliance.