Starting in 2026, the UK will introduce new requirements for cryptocurrency companies, mandating comprehensive user data collection for each transaction.
New Requirements for Crypto Companies
Under new rules proposed by HMRC and the FCA, from January 2026, crypto companies will have to collect detailed user data for every transaction. These rules apply to transactions within the UK and those from CARF-participating countries.
Impact on Business and Market
The initiative will impact crypto businesses by necessitating robust data collection systems. Non-compliance could result in penalties up to £300 per user. Financial burdens may arise due to compliance costs, and market shifts may occur as companies adapt to the new operational frameworks.
Global Regulatory Trend in Crypto
The UK's regulations resemble the EU's MiCA rules and reflect a global trend in regulating crypto transaction reporting. These changes may lead to improved market integrity and trust in digital assets, increasing investor confidence and potential market participation.
The UK's new crypto reporting rules underscore its commitment to enhancing transparency in the financial sector and combating tax evasion.
