In the UK, new rules will come into effect in January 2026, mandating crypto traders to provide personal data or face fines.
Introduction of New Regulation
According to new regulations, traders who fail to provide identifying information to cryptocurrency service providers could face fines of up to £300. This initiative is part of the Cryptoasset Reporting Framework aimed at increasing tax transparency and helping HMRC track unreported profits from assets like Bitcoin, Ethereum, and XRP.
Requirements for Service Providers
Service providers, including exchanges, NFT platforms, and crypto portfolio apps, will be required to collect personal details such as full names, birthdates, addresses, and tax IDs from both individuals and businesses. Failure to comply may result in penalties for the platforms.
Criticism and Community Reaction
Some cryptocurrency users have criticized the new rules, pointing out that profits are taxed while losses are ignored. One user remarked that small miners have already paid taxes on their equipment and energy, raising questions about why they should face additional tax scrutiny.
These regulatory changes are expected to generate significant revenue for HMRC, with projections of £315 million by April 2030. However, the initiative has sparked debate within the crypto community.
