The United Kingdom has announced new regulations for crypto companies, requiring them to collect and report data from every customer trade and transfer starting Jan. 1, 2026. The UK government aims to enhance crypto tax reporting by mandating the collection of user information such as full name, address, tax ID number, cryptocurrency used, and transaction amount. Companies must also report details of entities like trusts and charities involved in crypto transactions. Non-compliance or inaccurate reporting could result in penalties of up to £300 per user. To assist firms in meeting these requirements, the UK Revenue and Customs department will provide guidance soon. The new rules align with the Organisation for Economic Development’s Cryptoasset Reporting Framework, promoting transparency in crypto tax reporting. These changes demonstrate the UK’s commitment to establishing a robust regulatory framework that fosters industry growth and safeguards consumers. Chancellor Rachel Reeves introduced a draft bill in April to regulate crypto exchanges, custodians, and broker-dealers to combat fraud and scams. The UK’s proactive approach contrasts with the EU’s Markets in Crypto-Assets Regulation, allowing foreign stablecoin issuers to operate in the UK without registration and without volume restrictions. This move diverges from the EU’s plan to impose controls on stablecoin issuers to manage systemic risks. The UK government’s initiatives are part of its strategy to address the evolving landscape of cryptocurrencies, ensuring compliance, security, and market integrity.