UK Crypto Tax Reporting: New Rules for 2026
The UK government announced sweeping changes to cryptocurrency tax reporting, requiring all UK-based crypto firms to collect and report data on every customer transaction starting January 1, 2026.
Comprehensive Transaction Reporting
This new regulation, aimed at improving crypto tax transparency, mandates the collection and reporting of extensive user data for each transaction. This includes:
- Full name
- Home address
- Tax identification number
- Cryptocurrency type
- Transaction amount
The reporting requirement also extends to transactions involving companies, trusts, and charities using crypto platforms. Failure to comply or inaccurate reporting will result in penalties of up to £300 per user.
Proactive Compliance Encouraged
While the UK Revenue and Customs department will provide further compliance guidance, authorities urge crypto firms to begin collecting the necessary data immediately to ensure readiness for the January 2026 deadline.
Alignment with OECD Framework
This initiative aligns the UK with the Organisation for Economic Co-operation and Development's (OECD) Cryptoasset Reporting Framework, enhancing international cooperation on crypto tax matters. The UK government emphasizes its commitment to fostering responsible industry growth while protecting consumers.
Regulatory Framework Expansion
Chancellor Rachel Reeves also introduced a draft bill to bring crypto exchanges, custodians, and broker-dealers under stricter regulatory oversight to combat fraud and scams. This reflects the government's aim to create a more robust and secure crypto market.
UK vs. EU Regulations
The UK's approach differs from the European Union's Markets in Crypto-Assets (MiCA) regulation. Key distinctions include:
- Foreign stablecoin issuers: The UK allows foreign stablecoin issuers to operate without registration, unlike the EU.
- Stablecoin volume caps: The UK will not impose caps on stablecoin volumes, unlike the EU's approach to managing systemic risk.
Codeum's services can help UK-based crypto firms navigate these new regulations. Our expertise in KYC verification, smart contract audits, and security consultation can ensure your compliance and protect your business. Contact us today to learn more.