The government at the global level now seems to be more serious about the reporting of crypto transactions. In this episode recently, the United Kingdom has made changes in the rules associated with the cryptocurrency transaction, these rules will be applicable from 1 January 2026. This step has been taken by the UK government with the aim of increasing transparency in Crypto World, preventing benami transactions and curbing tax evidence. These rules will apply to all crypto exchanges, brokerage, custodians and all platforms that are associated with transactions in any form of cryptocurrency.
Complete data related to every user will have to share
Under the new rules, from 1 January 2026, all crypto companies working in UK will have to give complete information about every transaction of their customer to the government. This will include the full name, home address, tax ID number, transaction amount and cryptocurrency which were used.
These rules are not limited to transactions done by individuals only, but will also apply on institutions such as companies, trusts and charity. If a crypto firm does not follow these rules or reports incorrectly, they can be fined £ 300 (about ₹ 33,000) per user.
UK is adopting OECD’s new framework
The UK Government is implementing this change on the lines of Crypto Asset Reporting Framework of OECD (Organization for Financial Co-operation and Construction). It has been designed to make crypto tax reporting transparent and according to the International Standard to align Crypto Regulation in the UK.
UK Income and Customs says that they will soon provide detailed guidelines to companies to adopt this framework. However, he has suggested to Crypto firms that they should start collecting user data from now on so that there is no problem in the compliance of this rule by 2026. UK is constantly taking steps about cryptocurrency adoptation, recently UK’s first Regulated Crypto Derivatives launched Was .
UK’s different stance, comparison to EU’s MICA
UK’s crypto tax rule is quite different from EU Union’s new MICA (Markets in Crypto-Belongings Law). On the one hand, EU is looking more focused on controlling EU Crypto and Stabilcoins, while the UK has allowed the stabilcin firms to operate without any mandatory registration.
Also, in UK Stablecoins There will be no volume limit on transactions, while EU is preparing to bring a control mechanism on it soon due to financial risk.
Conclusion
This new step of the UK government gives a clear indication that it wants to support crypto innovation, but is also committed to prevent fraud, tax evasion and benami transactions. As the cryptocurrency is becoming part of the mainstream, such steps are becoming required to give investors a secure and transparent environment. This step of UK can become an example for countries like Pakistan, who are their own but we have a weak attitude in terms of regulation.
Also read:USDC Treasury burns $ 104m token on ethereum
