UK Cryptocurrency Firms Required to Report Every User and Transaction or Face Severe Penalties
According to a report by DL News, starting from January 1, 2026, cryptocurrency companies operating in the UK will be required to collect and report detailed user and transaction data in accordance with a new regulation introduced by the UK tax authority. This change stems from the UK's adoption of the Crypto-Asset Reporting Framework (CARF) — a global standard aimed at combating tax evasion and aligning the transparency of the crypto industry with that of the banking system. Under the new regulation, crypto platforms must identify each user and record their legal identity information, address, and taxpayer identification number. Additionally, platforms must record every transaction involving UK users or users from other CARF participating countries, including details such as transaction amount, asset type, quantity, and nature of the transfer. These requirements also apply to overseas companies providing services to UK customers. If the reported information is incorrect or incomplete, each user may be fined up to £300.
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