As the nation’s authorities are ready to take action against tax evasion, customers of major cryptocurrency exchanges in the United Kingdom will begin the New Year with comprehensive transaction data automatically gathered.
The new HM Revenue & Customs (HMRC) regulations mandate that cryptocurrency exchanges in the UK begin gathering all of their U.K. clients’ complete transactional records on January 1, 2026.
New regulations set in
“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 tax insurance provider Qdos, told FT.
This gives cryptocurrency users, dealers, and investors until the end of 2026 to get their digital asset affairs to avoid punishment, according to British tax specialists.
Also Read: UK FCA Proposes Full Crypto Rulebook To Bring Firms Under Traditional Finance Standards By 2026
The OECD Crypto-Asset Reporting Framework (CARF), which is already being implemented in the European Union, Canada, Australia, Japan, and South Korea, among other countries, is intended to increase transparency in the rapidly expanding digital asset market. The new HMRC recommendations bring the United Kingdom into compliance with this framework.
In 2027, cryptocurrency exchanges that fall under the category of “Reporting Cryptoasset Service Providers” are required to provide the HMRC with comprehensive information.
The HMRC will be able to calculate the tax that cryptocurrency users are required to pay, thanks to such data. Noncompliant platforms will be penalised by the HMRC. “This marks a major shift in how crypto trading is monitored from a tax perspective,” Maley told
New developments with crypto in UK
As the UK tax authority has boosted its scrutiny of cryptocurrency investors, the number of warning letters delivered to people suspected of underreporting or dodging taxes on revenues from digital assets has risen.
The so-called “nudge letters” are meant to persuade investors to voluntarily make changes to their tax returns prior to the commencement of formal investigations.
The pilot project to look at tokenised sterling deposits (GBTD) has been presented by UK Finance, a well-known trade group that represents more than 300 member institutions in the UK financial services sector, totalling more than 300 banking organisations in the UK.
Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander are the banks taking part in the experiment.
Also Read: US And UK Launch Joint Taskforce For Boosting Crypto Markets Of The Future