From 1 January 2026, HMRC’s new rules for reporting crypto will come into force. These sweeping changes will transform how digital assets are regulated in the UK. HMRC is targeting tax transparency, aiming to uncover undisclosed gains and tighten control over crypto activity. If you’re involved in crypto—whether as a provider or investor, this post tells you what you need to know.
The End of Crypto Anonymity
As legislation is being drafted to clarify crypto's legal status it's no surprise that further regulation of the crypto space in the UK is proposed. Furthermore, HMRC's new rules are aligned with the OECD’s Crypto-Asset Reporting Framework (CARF).
In short, they remove ambiguity. Crypto will no longer sit in a tax grey area. Every transaction, user, and wallet could fall under HMRC’s scrutiny.
Previously, crypto users operated with relative freedom and little oversight. However, HMRC’s new rules for reporting crypto demand strict data collection from UK-based crypto-asset service providers (CASPs). These include exchanges, wallet operators, and platforms that facilitate trades or transfers.
What are the reporting requirements?
For those individuals involved in the crypto space, providers must gather names, birth dates, addresses, and tax references like National Insurance numbers or Unique Taxpayer References.
Additionally, where users are based outside the UK, providers must also collect tax identification numbers and country of residence.
Where a business has crypto transactions, the rules require legal names, addresses, company registration numbers, and details of controlling persons.
What's more, providers must track every transaction—recording the date, type of asset, volume, and whether it was a sale, purchase, or transfer.
When do these rules take effect?
As mentioned previously HMRC’s new rules for reporting crypto take effect on 1 January 2026. From that date, providers must begin collecting user and transaction data. The first set of reports, covering all 2026 activity, must be submitted by 31 May 2027.
If you're operating in the crypto space you should start preparing now.—reviewing systems, upgrading compliance checks. Failure to act early could lead to rushed reporting, missed data, and regulatory consequences.
These rules come with teeth. If a provider fails to report correctly, they could face fines of up to £300 per user. Persistent non-compliance may lead to further HMRC investigations or more stringent penalties.
Crucially, HMRC will cross-check provider-submitted data with personal tax returns. Discrepancies between reported crypto activity and declared income may trigger enquries. HMRC’s message is clear: the era of unchecked crypto gains is over.
What action should I take?
Start by making sure your personal information is accurate with every platform you use. Keep detailed records of every transaction, including transfers between wallets.
Additionally, you should continue declaring crypto gains and income through your Self Assessment. These new rules don’t replace your existing obligations—they reinforce them. The risk of HMRC spotting gaps will only increase under this framework.
Summary
HMRC’s new rules for reporting crypto mark a turning point for the UK’s approach to digital assets. Transparency is no longer optional. Furthermore, the price of ignoring these changes will be high—for both providers and users.
If you act early, upgrading your systems, tracking your transactions and declare your earnings correctly your crypto affairs will be bullet proof when 2026 arrives..
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