Coinbase Under Fire: UK Tightens Crypto Reporting Rules as SEC Reopens Investigation

The UK tax authorities have introduced stringent new regulations targeting cryptocurrency exchanges, with Coinbase facing significant compliance challenges. Starting January 1, 2026, firms will be required to disclose detailed user data, including legal names, addresses, tax IDs, and full transaction histories. Failure to comply could result in severe penalties. This development coincides with reports that the SEC has quietly reopened an investigation into Coinbase, further intensifying regulatory scrutiny on the crypto giant. Below is a detailed summary of the situation and its implications for the cryptocurrency industry.

Coinbase Faces Regulatory Pressure in UK Amid New Crypto Reporting Rules

The UK tax authorities have tightened regulations on cryptocurrency exchanges, with Coinbase squarely in the crosshairs. Starting January 1, 2026, firms must disclose granular user data—including legal names, addresses, tax IDs, and full transaction histories—or face severe penalties. This move amplifies compliance burdens as global scrutiny of crypto intensifies.

Meanwhile, the SEC has quietly reopened an investigation into Coinbase’s historical user metrics. Regulators are probing the exchange’s discontinued claim of 100 million "verified users," signaling heightened attention to transparency in crypto reporting. The dual-front pressure underscores a pivotal moment: institutional adoption grows, but not without regulatory growing pains.

Weekly Wrap: Bitcoin’s $250K Prediction, Coinbase Cyber Attack, Ripple-SEC and More

Bitcoin could surge to $250,000 by the end of 2025, according to Scott Melker, host of The Wolf of All Streets podcast. Macro tailwinds, including cooling U.S. inflation and private credit expansion, may fuel this rally. Despite bullish sentiment following Bitcoin’s breach of $105,000, market liquidity faces risks from U.S. PPI data and debt ceiling negotiations.

Coinbase grapples with a cyber attack fallout estimated between $180 million and $400 million. The exchange’s security breach underscores persistent vulnerabilities in crypto platforms, even as institutional adoption accelerates.