UK to Enforce Mandatory Crypto Trader Reporting Under New 2025 Tax Rules

• Major crypto exchanges in the UK will begin collecting detailed transaction data from U.K. residents starting January 1, 2026, under new HMRC rules.
• The regulation is tied to the OECD’s Crypto-Asset Reporting Framework (CARF), requiring platforms to share customer ID, tax numbers, and full transaction history with HMRC starting in 2027.
• Those who fail to provide required information to exchanges face up to £300 in fines.

Crypto users in the U.K. will face tighter tax scrutiny from 2026 as exchanges start collecting detailed customer data for HM Revenue & Customs (HMRC).

From Jan. 1, 2026, crypto platforms operating in the U.K. must keep a full record of transactions made by U.K.-based clients. The requirement stems from the OECD’s Cryptoasset Reporting Framework (CARF), which obliges “Reporting Cryptoasset Service Providers” to identify customers, record their tax reference numbers, and log all relevant crypto movements.

Exchanges will pass this data to HMRC in 2027. The tax office will then cross-check those records against self-assessed tax returns to spot undeclared or inaccurately reported crypto profits. U.K. tax advisers say this gives traders and investors effectively until the end of 2026 to regularise historic activity and avoid heavier sanctions.

Seb Maley, CEO of tax insurance provider Qdos, told FT that this marks a “major shift in how crypto trading is monitored from a tax perspective”.

With platforms set to keep a record of this information from January 1, 2026, ahead of sharing it with HMRC the year after, the tax office will be able to cross-check tax returns against the data they’ve received,

Seb Maley, CEO of Qdos.

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Fines Up to £300

Individuals who refuse to provide required information to platforms can be fined up to £300 (roughly equivalent to AU$607.41). Also, exchanges that fail to report users correctly face penalties of up to £300 per missing customer entry. HMRC will also be able to sanction non-compliant platforms that do not meet their reporting obligations.

This brings the UK into line with other jurisdictions adopting CARF, including Canada, Japan, and some members of the EU. Australia, for example, recently proposed the Corporations Amendment (Digital Assets Framework) Bill 2025, introduced by Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino.

Related: Australia Targets $24B Boost With Tough New Crypto Crackdown

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