UK Tightens Crypto Monitoring with Mandatory Reporting by 2026

The UK is taking decisive steps to bring cryptocurrency transactions under stricter regulatory scrutiny. HM Revenue & Customs (HMRC) will require all domestic crypto platforms to submit detailed user transaction reports by 2026. This marks the nation's most aggressive move yet to curb tax evasion through digital assets.

The framework expands the OECD's crypto Asset Reporting Framework (CARF) to include domestic transactions alongside cross-border activity. Where CARF originally focused on international flows, Britain's adaptation casts a wider net. The 2027 global data-sharing initiative looms as a catalyst for this preemptive strike against financial opacity.

Market participants face a paradigm shift. The 'no gain, no loss' reporting mechanism draws particular attention—a double-edged sword that could either streamline compliance or burden traders with administrative overhead. Industry pushback seems inevitable as platforms scramble to implement tracking systems capable of meeting HMRC's specifications.