The UK will tighten controls over crypto companies from 2026
Date: 2025-05-19 Author: Gabriel Deangelo Categories: IN WORLD
From January 1, 2026, all cryptocurrency companies providing services to UK users will be required to transfer client and transaction data to HMRC, the country's tax authority. This requirement applies to both UK and overseas platforms if they interact with UK residents. The changes are being introduced as part of the international Cryptoasset Reporting Framework (CARF) initiative, aimed at increasing transparency in the crypto sphere and combating tax evasion.
Crypto companies will have to record and transfer the following information about each user: full name, residential address, tax identification number (TIN), as well as details of all transactions - including the type of asset, its quantity, value and nature of the transaction. Fines of up to £300 per client are provided for violation of the rules or incomplete provision of data.
Although the obligations will only come into force in 2026, the authorities recommend starting preparations early. According to HMRC, companies should have enough time to restructure their internal processes and set up the necessary infrastructure. Thus, the UK government expects to integrate the crypto economy into existing regulation, while maintaining a favorable environment for the development of fintech.
Finance Minister Rachel Reeves previously stated that the UK plans to introduce comprehensive regulations covering exchanges, custodial services and other elements of the crypto market. During UK Fintech Week, she emphasized that clear and transparent rules can strengthen investor confidence and protect the interests of citizens at the same time.
In addition, the possibility of creating a joint digital regulation with the United States - the so-called transatlantic "sandbox" for crypto companies is being discussed, which will allow testing innovations under the supervision of regulators of the two countries.
Unlike the European Union, which adopted a separate legislative framework MiCA, the UK prefers to include crypto assets in existing financial legislation. This means that operations such as lending, staking or the use of stablecoins will be regulated within the general legal framework - without introducing additional barriers for foreign participants and restrictions on the volume of transactions.
Earlier, the British financial regulator has already launched a public consultation on future legislation for the crypto industry.
