UK to Enforce New Crypto Reporting Rules from January
- The UK government will require cryptocurrency traders to report personal details to trading platforms starting January 1, as part of the Cryptoasset Reporting Framework.
- Information collection for first reports will begin on January 1, 2026, with reporting to HMRC in 2027.
- HMRC expects to raise £315 million ($417 million) in tax by April 2030 through improved compliance.
- Non-compliance could result in fines of up to £300 ($397) for investors and exchanges per unreported customer.
- The UK government is also reviewing taxation of DeFi activities like lending and staking, with a focus on recognizing taxable events when gains are realized.
The UK’s new rules aim to enhance compliance with existing capital gains tax laws by requiring detailed reporting from crypto traders and platforms. This initiative is expected to generate significant tax revenue while ensuring transparency in cryptocurrency transactions.
By enforcing these measures, the UK government anticipates raising substantial funds that could be used for public services, such as funding more than ten thousand newly qualified nurses for a year. (Source)
