Starting January 1, 2026, the UK government will require all crypto companies in the country to collect and report detailed information about every trade and transfer made by their customers. The goal is to improve tax reporting and create a stronger crypto regulatory system.
According to a statement from the UK Revenue and Customs department on May 14, companies will need to report:
- The customer’s full name
- Home address
- Tax identification number
- The type of cryptocurrency used
- The amount transferred or traded
Companies that fail to provide accurate information could face fines of up to £300 per user. The government said it will soon provide clear instructions to help companies comply with these new rules. It also emphasized that the regulation is meant to support industry growth while keeping users safe.
How Do These UK Rules Compare to the EU’s MiCA?
While the EU has already launched its Markets in Crypto-Assets (MiCA) regulation, the UK’s new rules take a slightly different path. For example:
- The UK will allow foreign stablecoin issuers to operate without registering, while the EU requires registration.
- The UK will not set limits on stablecoin volumes, unlike the EU, which may cap them to avoid financial risks.
These differences show that while both the UK and EU want safer crypto markets, they are using different strategies.
The new UK rules leave the door open to many questions: Will the UK’s more flexible approach attract more crypto businesses? Could it lead to greater risks? Should the UK adopt the EU’s stricter controls, or does its flexibility foster innovation?