TechFlow news, May 17 — According to DL News, the UK will require cryptocurrency businesses to collect and report detailed user and transaction data starting in 2026. This requirement stems from the Crypto-Asset Reporting Framework (CARF) adopted by the UK, aimed at combating tax evasion and increasing transparency in cryptocurrency transactions.
Under the new rules, platforms must identify each user and record their legal details, address, and tax identification number. Companies must also log all transactions involving UK users or users from other CARF-participating countries, including transaction value, asset type, quantity, and nature of transfer. The regulation also applies to overseas firms serving UK customers, which could face fines of up to £300 per user for incorrect or incomplete reporting.
UK Chancellor Rachel Reeves stated that these regulatory measures will boost investor confidence, support fintech development, and protect the public's interests. Compared to the EU's MiCA regulations, the UK has chosen to integrate cryptocurrencies into its existing financial framework rather than establishing a separate regulatory system.
