UK to Enforce Mandatory Crypto Trade Reporting Starting 2026

HMRC Sets January 2026 Deadline for Crypto Trade Reporting

Starting January 1, 2026, all crypto platforms operating in the United Kingdom will be required to collect and report detailed personal and transaction data for every crypto trade and transfer, per a May 14 directive from HM Revenue and Customs (HMRC).

Platforms must record users’ full names, home addresses, tax identification numbers, and log each transaction’s amount and crypto asset used.

Reporting Obligations Extend to Companies, Trusts, and Charities

These new rules do not apply solely to retail users. Companies, trusts, and charities involved in digital asset activity must also comply.

Noncompliance or inaccurate submissions could result in fines of up to £300 (~$400) per user.

HMRC confirmed it will issue further guidance, but urged crypto firms to begin compliance preparations immediately.

UK Aligns with OECD Global Crypto Reporting Standards

This sweeping change stems from the UK’s adoption of the OECD’s Cryptoasset Reporting Framework (CARF)—a global initiative designed to harmonize tax disclosure standards across jurisdictions.

Chancellor of the Exchequer Rachel Reeves reaffirmed the government’s dual aim: “The UK is open for business—but closed to fraud, abuse, and instability.”

Legislative Push for Market Confidence

In parallel, the UK government is advancing crypto-specific legislation that seeks to combat fraud, expand oversight, and enhance investor protection.

A November 2024 Financial Conduct Authority (FCA) study found that 12% of UK adults now hold crypto, up from 4% in 2021—underscoring the urgent need for regulatory clarity.

UK vs. EU: A Divergence in Stablecoin Regulation

Unlike the EU’s MiCA framework, which caps stablecoin transaction volumes and demands issuer registration, the UK’s approach is more innovation-friendly.

Foreign stablecoin issuers will not face registration requirements, and no transaction caps will be imposed.

Industry Calls for Strategic Leadership

In early 2025, a coalition of UK crypto trade associations urged the Starmer government to appoint a national crypto envoy and develop a unified strategic plan.

In a letter to Varun Chandra, special adviser on business and investment, six digital economy groups stressed the need to align UK policy to unlock growth, jobs, and capital flows.

Legal Clarity for Digital Assets in Property Law

In September 2024, the UK introduced a bill to recognize crypto, NFTs, and carbon credits as “things” and “personal property” under national law—paving the way for more secure transactions and dispute resolution.

FCA Expands Oversight Amid Market Turbulence

Following several global bankruptcies, the FCA continues to focus on anti-money laundering controls and consumer protection in the digital asset sector.

The UK is signaling a clear pivot: from passive observation to proactive governance of crypto markets.