The United Kingdom is embracing crypto with a focus on transparency, requiring detailed documentation for every user, trade, and transfer.
Starting January 1, 2026, crypto firms in the UK must collect and report comprehensive user and transaction data under a new framework by the UK tax authority.
This shift is part of the UK’s adoption of the Crypto-Asset Reporting Framework, aligning crypto transparency with banking to combat tax evasion. Platforms must identify each user, recording legal details, addresses, and tax ID numbers.
They are also required to document all transactions involving UK users or those in CARF-participating countries, detailing the value, asset type, quantity, and nature of transfers. These rules apply to foreign firms serving UK clients as well, with penalties of up to £300 per user for non-compliance.
