From 1 January 2026, cryptocurrency platforms in the UK will be legally required to collect and verify user data, including full name, date of birth, country of residence, and tax identification number.
HMRC announced the update in a LinkedIn post warning that “wrong or missing details could mean a penalty, additional fines, and account restrictions.” The new measures form part of the UK’s adoption of the Cryptoasset Reporting Framework (CARF), designed to bring greater transparency to digital asset holdings and transactions.
What the HMRC Guidance Says
According to HMRC, the rules apply to all “reporting cryptoasset service providers” — such as exchanges, brokers and wallet platforms. Providers must begin collecting user information from 1 January 2026, and submit their first reports by 31 May 2027, covering all transactions in the 2026 calendar year.
The government guidance states: “You’ll need to collect information about all individual users… including their name, date of birth, home address, country of residence, and tax identification number.” HMRC adds that these details are essential to help ensure taxpayers report crypto gains accurately.
What It Means for Crypto Users
The move brings UK crypto rules in line with global OECD standards, closing tax-evasion loopholes and boosting cross-border data sharing. While most regulated exchanges already conduct Know-Your-Customer (KYC) checks, the new regime introduces stricter verification and reporting obligations. HMRC advises: “You may want to start collecting information earlier to prepare for the new rules.”
For investors, that means ensuring personal and tax details are up to date, or risk penalties, frozen accounts, and delayed withdrawals when the framework comes into force.
You can see more info on HMRC’s website here.
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