From 1 January 2026, all UK-based cryptocurrency exchanges and service providers will be legally required to collect and report detailed user and transaction data to the tax authority, marking the start of a sweeping crackdown on undeclared crypto earnings.

Under the new rules, which stem from the adoption of the international Crypto-Asset Reporting Framework, platforms must record client identities — including name, address, date of birth and tax identifiers — as well as every crypto transaction, whether a trade, transfer or disposal.

The obligation applies to individual investors and businesses.

Firms classified as “reporting crypto-asset service providers” will submit the first comprehensive report by 31 May 2027, covering all activity over the 2026 calendar year.

In subsequent years, reports will be due annually by the same end-May deadline.

The tax authority has warned that non-compliant platforms could face penalties up to £300 per user.

The changes effectively end the era of opaque crypto transactions in the UK and integrate digital assets into the same regulatory and tax-reporting standards that apply to banks, brokers and traditional financial services.

As a result, UK taxpayers disposing of crypto assets — whether through sale, swap or payment — will find their trades automatically logged and reviewable by authorities when filing Self Assessment returns.

Tax advisers and compliance specialists are already urging crypto investors to reconcile their holdings, gains and tax returns before the new regime takes effect.

Many see the shift as a turning point, bringing enforced transparency to a sector long known for its privacy and informal record-keeping.

For legitimate users, it offers clarity; for those who skipped reporting obligations, exposure.

The arrival of the new rules underscores the government’s intent to close longstanding tax loopholes in the digital-asset ecosystem.