Crypto traders in the UK will have data handed to taxman from 2026
Starting next year, UK-based crypto firms will be forced to hand over up to six pieces of customer information to HM Revenue & Customs (HMRC) or incur a £300 ($400) fine.
From January 1, 2026, providers will need to collect each UK-based customer’s name, date of birth, home address, country of residence, National Insurance number, or Unique Taxpayer Reference.
For non-UK residents, they will need to collect their tax identification number (TIN) and the country where it was issued.
When dealing with companies, trusts, or charities, the service provider must collect the legal business name, the main business address, company registration number, and, if not UK-based, their tax identification number.
In addition, they will also be required to track and submit the value and type of each transaction, the exact cryptoasset traded, and the number of units.
If they fail to accurately track and submit the relevant information, providers could face a £300 ($400) fine for each affected customer.
The measures have been put in place as part of an across-the-board crackdown on digital asset-related crime. It’s hoped that the new rules will allow HMRC to more accurately police “fast-growing digital economies” like crypto.
Read more: Germany could lose tax-free crypto policy under new ruling coalition
According to Seb Maley, CEO of tax insurance provider, Qdos, “HMRC’s casting its net far and wide as it looks to crack down on suspected tax avoidance and non-compliance among cryptocurrency holders in the UK.
“By collecting the personal information of those buying and selling crypto — along with the values being exchanged — HMRC will know how much tax should be paid on these assets.”
He added, “In simple terms, if the income a taxpayer declares on their self-assessment tax return doesn’t match up with the amount reported by these platforms, HMRC has the information it needs to launch a tax investigation.”
The new rules are expected to affect millions of UK crypto users, with around 12% of adults in the country estimated to hold some sort of crypto.
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