HMRC to Mandate Sharing of Personal Info by Crypto Users Beginning in 2026
For UK residents involved in crypto asset, significant tax changes are on the horizon. Effective from January 2026, HM Revenue & Customs (HMRC) is reinforcing regulations surrounding crypto to ensure that gains are adequately reported. Financial platforms will need to gather comprehensive personal information from users and relay it to the authorities, eliminating the notion that crypto activities are exempt. Under the UK’s intensified crypto regulations, even foreign exchanges that cater to UK clients are obligated to submit relevant data.
New Regulations Reduce Privacy
These new stipulations imply that crypto platforms operating in the UK, as well as overseas exchanges serving UK customers, will be required to obtain identifying information from every trader on their protocol. This includes your complete name, residential address, birth date, and your national insurance number or tax identification.
New reporting regulations for crypto in the UK coming soon!
TLDR: crypto-asset service providers will be subjected to the same reporting regulations as conventional financial entities.
From January 1, 2026, cryptoasset service providers based in the UK must collect and report user information to HMRC, under the… pic.twitter.com/SQEtO3vNI3
— UK CBT (@UKCBT_org) May 19, 2025
Once this information is collected, it will be provided to HMRC. This way, they can more easily align your digital currency dealings with your tax documentation. If you’ve ever wished that the tax authorities would overlook your crypto profits, those days are numbered.
Why Are These Changes Being Implemented?
In short, HMRC is fed up with individuals not reporting their crypto asset earnings. Profits from crypto are subject to Capital Gains Tax regulations, similarly to earnings from stocks or real estate. However, because tracking crypto transactions is more challenging than with traditional assets, many people either aren’t aware of their tax obligations or are hoping to go unnoticed.
The government is also making it tougher to operate in the shadows. The CGT allowance has been reduced to just £3,000 for the tax year 2024/25. This implies that even modest profits could result in tax implications.
If you fall under the basic-rate taxpayer category, you’ll incur a 10 percent tax on your profits. For those in the higher tax bracket, this amount rises to 20 percent. The significant change now is HMRC’s enhanced ability to monitor these gains without depending on individuals to declare them.
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Consequences of Non-Compliance
Should platforms neglect the new guidelines, they may incur fines of up to £300 for every user they fail to report accurately. However, it’s the individual users who may bear the brunt of the consequences. Neglecting to report taxable gains could lead to not only paying the original tax but also incurring interest and penalties, which could reach double the amount owed.
In the most severe cases, there could potentially be criminal repercussions as well. Hence, it’s not something to ignore.
This Is Not Exclusively a UK Matter
These alterations are a part of a broader initiative by tax agencies globally. The UK is aligning with the OECD’s Crypto-Asset Reporting Framework, which aims to standardize how countries monitor crypto transactions and exchange information across borders.
This means your foreign exchanges are likely not safe sanctuaries either. If they cater to UK clients, they will presumably need to adhere to these regulations as well.
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What Are Your Next Steps?
Begin documenting everything. This means recording every purchase, sale, trading network, and transfer. Keep track of dates, values, and crypto wallet addresses. Utilizing crypto tax software can be highly beneficial, especially if you’ve engaged in numerous trades and the transactions are accumulating.
If your tax scenario appears complicated, it may be wise to consult with a professional. These new regulations won’t merely impact large investors or full-time traders. If you’ve realized any gains, it’s prudent to be proactive before HMRC comes knocking.
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Key Takeaways
- Starting January 2026, HMRC will mandate that crypto platforms gather and report personal data from UK users to enhance tax crypto law.
- Information such as full name, residential address, date of birth, and national insurance number must be provided by platforms to HMRC.
- These modifications are in accordance with the OECD’s Crypto-Asset Reporting Framework, meaning foreign exchanges servicing UK clients must comply as well.
- Consequences for users may include interest, fines, or even criminal charges for not accurately reporting taxable crypto earnings.
- With the CGT allowance now set at only £3,000, even minor crypto profits could incur taxes, making tracking and tax management tools increasingly important.
The post HMRC to Require Crypto Users to Share Personal Info Starting 2026 appeared first on 99Bitcoins.
