UK crypto firms told to report every user and transaction or risk stiff penaltie

UK crypto firms must collect and report detailed user and transaction data starting in 2026 under a framework rolled out by the UK tax authority, with penalties of up to £300 per user for faulty or missing data. The rules adopt the Cryptoasset Reporting Framework, a global standard meant to curb tax evasion, and require firms to identify every user, record their legal details and tax identification numbers, and document each transaction's value, asset type, quantity and nature. The requirements also apply to foreign firms serving UK clients. Separately, Chancellor Rachel Reeves announced draft legislation to bring crypto exchanges, dealers and custodians into the regulatory perimeter, and the MiCA Crypto Alliance says the UK's approach is more open than the EU's MiCA rules.