Key Takeaways
- Failure to comply could result in penalties of up to Euro 300 ($398) per user.
- User’s full name, home address and tax identification number to be reported for every crypto transaction they make.
The UK government has announced stringent crypto regulations that would require a user’s full name, home address and tax identification number to be reported for every crypto transaction they make. The move will enforced starting Jnauary 1, 2026, the Uk Revenue and Customs Department said
Under the new regulation, every crypto transaction must be logged with details and specifics including the type of crypto used and the amount transferred.The plan is dubbed as Crypto Asset Reporting Framework (CARF), which looks to bring forth transparency in cryptocurrency transactions
The policy will apply not only to individual users but also to companies, trusts, and charitable organizations engaging in crypto-related activities. Foreign firms targeting UK-based clients will also be required to meet the same standards.
The UK customs department noted that failure to comply with regulations or not submitting incomplete or inaccurate information, could result in penalties of up to Euro 300 (around $398) per user.
The move marks the UK’s formal adoption of the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), a global initiative to align digital asset tax reporting rules across jurisdictions.
“The UK is open for business — but closed to fraud, abuse, and instability,” Chancellor of the Exchequer Rachel Reeves said last month while unveiling draft legislation to expand oversight of crypto exchanges, custodians, and broker-dealers. The law aims to improve consumer protection and confidence in the market.
The latest regulation comes on the heels of a surge in Crypto adoption in the UK in recent years. According to the Financial Conduct Authority, 12% of UK adults held some form of crypto asset by late 2024, up from 4% in 2021. The new framework seeks to bring crypto reporting standards closer to those in traditional finance.
Last month, the UK government announced draft rules for crypto that seek to bring ‘crypto exchanges, dealers and agents’ in line with regulations, citing the increase in exposure to risky firms and crypto forms
