Crypto Firms To Report Every Single Transaction Under New UK Laws

Businesses providing crypto services in the UK will be required to collect more extensive user and transaction data by next year. The HM Revenue and Customs (HMRC) says the new rule covers all UK-based reporting crypto-asset service providers (RCASPs), which include exchanges, brokers, dealers, and any firm that transacts with digital assets on behalf of users or provides a platform for the transactions. The government will implement the policy as part of the Crypto-Asset Reporting Framework (CARF), a global initiative that promotes the exchange of information between countries to address tax evasion risks related to digital assets. “From 1 January 2026, if you provide cryptoasset services in the UK, you’ll have new responsibilities for collecting data and reporting it to HMRC . This is because the UK is introducing the Organisation for Economic Development (OECD) Cryptoasset Reporting Framework (CARF), and extending it to include domestic reporting.” Crypto firms will have to collect data such as names, dates of birth, addresses and country of residence for individual users and business names and addresses for entity users, which include companies, partnerships, trusts and charities. For transactions involving users based in the UK or other countries participating in the CARF, crypto firms need to record the type of crypto asset and transaction involved as well as the value and number of units. The HMRC urges crypto firms to verify the accuracy of the information they collect since there will be penalties of up to £300, or around $399, per user for inaccurate, incomplete or unverified reports. Follow us on X , Facebook and Telegram Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Crypto Firms To Report Every Single Transaction Under New UK Laws appeared first on The Daily Hodl .

Source: The Daily Hodl