<ul><li>Starting from January 1, 2026, all crypto firms in the UK will be required to collect and disclose detailed user and transaction data to HM Revenue and Customs (HMRC) in line with OECD's Cryptoasset Reporting Framework (CARF).</li><li>Non-compliance with the new rules could result in fines of up to £300 per user for misreporting, posing a significant penalty for platforms with large user bases.</li><li>The UK government aims to enhance tax compliance, combat illicit activities, and align crypto oversight with traditional banking standards by requiring firms to report transaction values and types of cryptoassets.</li><li>The UK has decided to align with the US in treating crypto assets as securities, deviating from the EU's Markets in Crypto-Assets (MiCA) framework, with the intention of boosting investor confidence and supporting Fintech growth.</li></ul>

UK Government Asks Crypto Firms to Collect User Data from 2026, Hefty Fine for Misreporting

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