Crypto companies must report any transaction in the future
From January 1, 2026, British crypto companies will have to collect and report data from any trading business and every transfer of cryptocurrencies as part of a broader effort to improve tax reporting, the British government said.
Everything, starting with the full name of the user, its residential address and its tax identification number, must be recorded and reported for each transaction, including the cryptocurrency and the eventful amount, the British tax authority said in one Explanation We will 14. May.
Information on companies, trustees and donation organizations that carry out transactions on crypto platforms must also be reported.
If the regulations are not complied with or inaccurate, punishments of up to £ 300 ($ 398.4) can be imposed per user. The British tax authority said that it would inform the companies in due course on how they can comply with the new measures.
However, the British authorities encourage the crypto companies to start data acquisition to ensure compliance with the regulations.
The new regulation is part of the British integration of the Cryptoasset Reporting Framework of the Organization for Economic Development to improve transparency in crypto tax reporting.
The changes reflect the goal of the British government to create a more robust legal framework that promotes the growth of the industry and at the same time ensures consumer protection.
The British Chancellor Rachel Reeves also submitted a draft law at the end of April to involve crypto, depot banks and broker dealers in the area of regulation and to combat fraud.
“Today's announcement sends a clear signal: Great Britain is open to business – but closed for fraud, abuse and instability,” said Reeves at the time.
A study by the British financial supervisory authority Financial Conduct Authority from last year showed that in 2024 12 % of adult British would have cryptocurrencies – a significant increase compared to 4 % in 2021.
Great Britain deviates from the EU
The United Kingdom's step of integrating the crypto regulations into the existing financial framework is in contrast to the approach of the European Union (EU), which last year introduced its new regulation called Market in Crypto-Assets (Mica).
Sea The Mica Crypto Alliance is a significant difference in the fact that the United Kingdom of Foreign StableCoin players gives the opportunity to operate in the United Kingdom without having to register.
There will also be no upper limit for the stable coin volume, in contrast to the EU approach, which can impose controls to the stable coin emittent to control systemic risks.
