Digital asset service providers in the UK must submit customer data to His Majesty’s Revenue and Customs (HMRC) beginning Jan. 1, 2026.
According to a May 14 update on the financial authority’s website, this move follows the adoption of the OECD’s Cryptoasset Reporting Framework (CARF), which mandates global tax transparency standards for digital assets.
Under the rules, all UK-based crypto service providers, including exchanges, brokers, and wallet operators, must collect details on every user. However, reporting will be limited to users who are tax residents in the UK or other countries that have adopted CARF.
These details include a customer’s full name, address, country of residence, wallet addresses, and a breakdown of crypto transactions, including transfers, disposals, gross proceeds, and fair market values of the digital assets.
HMRC requires the first report to be filed by May 31, 2027. This will cover transaction data for the 2026 calendar year.
After that, the service providers must submit annual reports by May 31 for the previous year. If a firm has no reportable data in a given year, it will not be required to file.
Meanwhile, failure to comply with these requirements could result in penalties of up to £300 per user. HMRC stated that sanctions apply for non-reporting, late submissions, or if the submitted data is incomplete, inaccurate, or unverified.
UK’s crypto regulatory efforts
The reporting framework is part of a broader UK effort to bring digital assets under formal financial regulation.
In April, the UK Treasury introduced a draft amendment to the Financial Services and Markets Act 2000. The proposed changes aim to regulate key areas of the crypto sector, including stablecoins, staking services, and digital asset custody.
Once enacted, the rules will place crypto firms under the Financial Conduct Authority (FCA) oversight. It would also require the firms to secure FCA authorization and comply with standards that govern traditional financial services.
The authorities argued that these changes are necessary to boost investor confidence, support the crypto industry’s growth, and protect UK investors.
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