Catenaa, Monday, December 1, 2025- The United Kingdom will launch new reporting rules on January 1 that require crypto traders to share personal details with registered platforms as part of an international tax agreement.
The rules form the Cryptoasset Reporting Framework, which aligns with standards adopted through the OECD and will shift more data to HM Revenue and Customs.
The Budget released this week confirms that platforms must gather user data starting in 2026 and submit reports to HMRC in 2027.
The information will include transaction history and tax reference numbers. Investors who withhold details may face fines of up to 300 pounds, while platforms can face the same penalty for each unreported customer.
HMRC plans to use the data to check tax returns and match gains from trading activity. The Treasury expects the system to raise hundreds of millions of dollars by 2030.
Analysts say the rules could increase operating costs for exchanges. They warn that some may pass those costs to customers. They also note that some traders could shift to platforms that do not follow the reporting rules.
Law firms say exchanges will need stronger systems to gather and manage user information.
They warn that late reporting or errors could lead to penalties. They add that the process may challenge firms that deal with customers who hesitate to share tax details.
