UK for the implementation of new rules on crypto reporting until 2026. Years

From 1. January 2026. years, Criptocurstce companies operating in the UK must collect and report detailed personal and transaction data of their users. The rule It also includes individual and business accounts and includes full names, addresses and tax identification numbers.

The firms face £ 300 penalties per user for mistakes

The income and customs of HM (HMRC) confirmed the update last week. New reporting obligations are based on the OECD cryptoasset reporting framework (CARF), which aims to create a global standard for tax transparency in the cryptocurnancy sector.

HMRC advised companies to start preparing early. Incorrect or incomplete reports could result in a fine of up to £ 300 per user. CryptoCurrenci firms will also be responsible for verifying the accuracy of data collected, and the rules on depth diligence are expected to be published in the future update.

Extensive requests for data collection

The new rules apply to any cryptocurst transaction that includes users in the UK or in other countries adopted by the Standard Carf. For individual users, the company must collect the name, date of birth, home addresses, country of residence and tax reference number. Residents in Great Britain must provide their national insurance number or unique taxpayer reference, while non-residents must provide their can and country in which it was issued.

For companies requirements include a registered company name, primary address and registration number for entities in the UK. Foreign companies must provide tin and land that issues. In some cases, the platforms must also record information on controlling persons in business.

All transactions must be recorded details on the type of cryptoasset, type of transaction, quantity and value.

Adaptations presented as an interest in cryptocurrency are still raising in the UK. According to Yougow Research, the percentage of adults in Great Britain who bought cryptocurrencies increased from 6% in 2022. to 14% in 2023. years. The announcement trend suggests that new rules are likely to affect the increasing number of users.

FCA clamps monitoring and discussing loan constraints

In particular, the authors for financial time UK (FCA) considers the ban on the use of credit to purchase crypto. However, stablechoins who approved the regulator would not be affected. FCA is currently consulted with the public on this and other possible rules.

All cryptocurnent companies in the UK have already been registered in FCA. The Agency for so far includes laundry money laundering, financial promotion and consumer protection. Between April 2023. and April 2024. FCA rejected 86% of Cryptocurrency registration applications. The rejection rate has fallen to 75% since then in the current financial year.

The UK strategy differs from the EU

The United Kingdom regulatory approach is characterized by the European Union market in the Cryptocurrency-Function (MICA) regulation. Unlike the EU, the United Kingdom plans to enable the emigratory issuers of Stablecoin to work without registration. There is also no limitations of volume on Stablecoin transactions – another difference from the EU, which can impose such caps to manage system risk.

(Photo would Unravel)

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Tags: crypto, Crypto legislation, cryptocurrency, UK