UK to Enforce Stricter Crypto Transaction Reporting from 2026

The UK government is set to implement expanded crypto reporting requirements starting January 1, 2026, mandating that all domestic crypto platforms—including exchanges and custodians—collect and report detailed transaction and user data for UK residents. This move aligns with the OECD's Crypto-Asset Reporting Framework (CARF) and aims to close reporting gaps for tax compliance and anti-money laundering efforts.

Under the new rules, reporting cryptoasset service providers must gather identifying information such as name, date of birth, address, and tax identifiers, along with full transaction records covering amounts, asset types, counterparties, and dates. Data collection begins in 2026, with the first reports due to HM Revenue & Customs (HMRC) in 2027, enabling cross-checking against tax returns to detect discrepancies and enforce penalties.

The change is introduced via secondary legislation and HMRC guidance issued in 2025, strengthening the UK's ability to detect undeclared crypto income and capital gains. Additionally, HMRC plans to update DeFi taxation rules, so that activities like lending and liquidity-pool participation do not count as taxable events, better reflecting their economic effect.

This regulatory shift is part of a broader international push for crypto transparency, with countries like South Korea and Spain also tightening tax rules. For instance, South Korea now targets offline crypto storage devices, while Spain proposes taxing crypto profits as regular income at rates up to 47%.