UK Crypto Firms Must Disclose Customer Transactions Starting July 15 2024
According to webangah News Agency, the UK government will mandate cryptocurrency companies operating in the country to collect and report comprehensive customer transaction data beginning january 2026. This move is part of broader efforts to enhance tax clarity in the digital asset sector.
in a statement released on May 14,HM Revenue & Customs (HMRC) specified that firms must record full names,residential addresses,and taxpayer identification numbers for all transactions. The reporting requirements will also include details about the type of cryptocurrency used and transaction amounts.
The regulations extend to companies, trusts, and charitable organizations using crypto platforms. Non-compliance or inaccurate reporting could result in penalties of up to £300 ($398) per user. HMRC confirmed it would provide guidance on implementation procedures in due course.
UK authorities are encouraging crypto businesses to begin data collection promptly to ensure readiness for the new rules. The policy aims to establish robust oversight while supporting industry growth – part of Britain’s adoption of the OECD’s Crypto-Asset Reporting Framework for improved tax transparency.
The measures reflect Britain’s push for stronger consumer protections within its regulatory framework. in late April, Chancellor Rachel Reeves proposed legislation bringing crypto exchanges, custodians and brokers under financial oversight “to combat fraud.”
A November 2023 Financial Conduct Authority study revealed cryptocurrency ownership among UK adults tripled from 4% in 2021 to 12% by early 2024 – highlighting growing market penetration that regulators seek to address.
The UK’s approach contrasts with the EU’s Markets in Crypto-Assets (MiCA) framework implemented last year. Key differences include allowing foreign stablecoin issuers unrestricted operation without local registration and imposing no transaction volume limits - unlike potential EU controls targeting systemic risks.
