UK Confirms New Crypto Reporting Rules — Data Collection for Exchanges Begins 1 January 2026
Cryptoasset exchanges in the UK to report user data to HMRC under global CARF rules — first reports due by May 2027
The UK government has confirmed in its 2025 Budget that new rules will require cryptocurrency traders to provide personal details to trading platforms from 1 January 2026, ahead of formal reporting to tax authorities.
The move implements the international Cryptoasset Reporting Framework (CARF), compelling cryptoasset service providers to supply user identity and transaction data to HM Revenue & Customs (HMRC).
([GOV.UK][1]) Under CARF, UK-based “reporting cryptoasset service providers” (RCASPs) — including exchanges, brokers, and other platforms — must from 1 January 2026 collect information on customers such as name, address, date of birth, tax residency, and either National Insurance number or tax identification number.
They must also log every relevant crypto transaction, including asset type, transaction type, amounts and value at the time of the transaction.
([GOV.UK][2]) RCASPs will need to register with HMRC, perform due diligence, retain records for five years, and submit electronic reports summarising all transactions for tax-resident users by 31 May 2027 — covering activity from the 2026 calendar year.
([Legislation.gov.uk][3]) Failure to comply may result in fines.
Individual investors who do not provide required details may be penalised up to £300.
Equally, service providers could be fined up to £300 per unreported customer.
([KPMG][4]) While the rules do not impose a new tax on crypto profits, they enable HMRC to cross-check reported data against tax returns and identify undeclared gains or income from digital assets.
The revenue authority estimates the new reporting framework could raise up to £315 million in additional tax by April 2030 — a sum it says could pay for more than ten thousand newly qualified nurses for a year.
([JH Greenwood & Company][5]) Tax-regulation specialists warn that cryptoasset platforms may find it challenging to collect all required information, especially for clients unwilling or unable to supply tax reference numbers.
This places heavy compliance demands on RCASPs, which must upgrade their systems and processes to meet the new obligations.
([Passle][6]) The confirmed changes mark a major step by UK authorities to enhance tax transparency in the crypto sector and align domestic policy with international efforts to limit tax evasion in digital-asset markets.
The rule change begins 1 January 2026, with first reports due in mid-2027, giving traders and platforms a narrow window to prepare for compliance.
The move implements the international Cryptoasset Reporting Framework (CARF), compelling cryptoasset service providers to supply user identity and transaction data to HM Revenue & Customs (HMRC).
([GOV.UK][1]) Under CARF, UK-based “reporting cryptoasset service providers” (RCASPs) — including exchanges, brokers, and other platforms — must from 1 January 2026 collect information on customers such as name, address, date of birth, tax residency, and either National Insurance number or tax identification number.
They must also log every relevant crypto transaction, including asset type, transaction type, amounts and value at the time of the transaction.
([GOV.UK][2]) RCASPs will need to register with HMRC, perform due diligence, retain records for five years, and submit electronic reports summarising all transactions for tax-resident users by 31 May 2027 — covering activity from the 2026 calendar year.
([Legislation.gov.uk][3]) Failure to comply may result in fines.
Individual investors who do not provide required details may be penalised up to £300.
Equally, service providers could be fined up to £300 per unreported customer.
([KPMG][4]) While the rules do not impose a new tax on crypto profits, they enable HMRC to cross-check reported data against tax returns and identify undeclared gains or income from digital assets.
The revenue authority estimates the new reporting framework could raise up to £315 million in additional tax by April 2030 — a sum it says could pay for more than ten thousand newly qualified nurses for a year.
([JH Greenwood & Company][5]) Tax-regulation specialists warn that cryptoasset platforms may find it challenging to collect all required information, especially for clients unwilling or unable to supply tax reference numbers.
This places heavy compliance demands on RCASPs, which must upgrade their systems and processes to meet the new obligations.
([Passle][6]) The confirmed changes mark a major step by UK authorities to enhance tax transparency in the crypto sector and align domestic policy with international efforts to limit tax evasion in digital-asset markets.
The rule change begins 1 January 2026, with first reports due in mid-2027, giving traders and platforms a narrow window to prepare for compliance.
