Starting in 2026, UK cryptocurrency companies will be required to report each user and each transaction or face severe penalties

BlockBeats News, May 17th, according to DL News, starting from January 1, 2026, cryptocurrency companies operating in the UK will be required to collect and report detailed user and transaction data in accordance with a new rule introduced by the UK tax authority.

This change stems from the UK adopting the Cryptocurrency Asset Reporting Framework (CARF) — a global standard aimed at combating tax evasion and aligning the transparency of the cryptocurrency industry with the banking system.

Under the new rule, cryptocurrency platforms must identify each user and record their legal identity information, address, and taxpayer identification number.

In addition, platforms must also record every transaction involving UK users or users from other CARF-participating countries, including details such as transaction amount, asset type, quantity, and transfer nature.

These requirements also apply to overseas companies serving UK customers. If the reported information is incorrect or incomplete, each user can face a maximum fine of £300.