If you’re a UK resident dabbling in crypto, there’s a big tax shake-up coming your way. Starting January 2026, HM Revenue & Customs (HMRC) is tightening the rules on crypto to make sure no gains slip through the cracks. Platforms will be required to collect detailed personal info from users and report it to the government, putting an end to the idea that crypto is somehow off-grid. As part of the UK crypto crackdown, even overseas exchanges must report data if they serve UK customers.
New Rules Mean Less Anonymity
The new requirements mean that crypto platforms operating in the UK, or even overseas exchanges that serve UK customers, will need to gather identifying details from anyone trading on their site. That includes your full name, home address, date of birth, and your national insurance number or tax ID.
New UK crypto reporting rules incoming!
TLDR: crypto-asset service providers will be held to the same reporting standards as traditional financial institutions.
From 1 Jan 2026, UK-based cryptoasset service providers must collect and report user data to HMRC, under the… pic.twitter.com/SQEtO3vNI3
— UK CBT (@UKCBT_org) May 19, 2025
Once collected, this data will be handed over to HMRC. From there, they’ll be able to match your crypto transactions to your tax records more easily. If you’ve ever hoped the taxman wouldn’t notice your crypto gains, those days are numbered.
Why Is This Happening?
Put simply, HMRC is tired of people not declaring their crypto profits. Crypto gains are taxable under Capital Gains Tax rules, just like profits from stocks or property. But because crypto trades are harder to track than traditional assets, many people either don’t know they have to pay tax or are hoping no one notices.
And the government is making it harder to fly under the radar. The CGT allowance was slashed to just £3,000 for the 2024/25 tax year. That means even modest profits could push you into taxable territory.
If you’re a basic-rate taxpayer, you’ll pay 10 percent on your gains. If you’re in the higher tax bracket, it goes up to 20 percent. What’s changing now is HMRC’s ability to actually track those gains without relying on people to self-report.
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The Penalties for Ignoring It
If platforms don’t follow the new rules, they face fines of up to £300 for every user they fail to report properly. But it’s individual users who could feel the real sting. Failing to declare taxable gains could mean paying not just the original tax but also interest and penalties, which could be up to double the amount owed.
In the most serious cases, criminal charges aren’t off the table either. So, it’s not something to brush off.
This Isn’t Just a UK Thing
These changes are part of a wider push by tax authorities around the world. The UK is aligning with the OECD’s Crypto-Asset Reporting Framework, which is meant to standardise how countries track crypto activity and share information across borders.
That means your international exchanges probably aren’t safe havens either. If they’re dealing with UK customers, they’ll likely need to play by these rules too.
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What Should You Do Now?
Start keeping track of everything. That means logging every buy, sell, swap, and transfer. Know your dates, values, and wallet addresses. Tools like crypto tax software can help, especially if you’ve been trading for a while and the transactions are piling up.
And if your tax situation is messy, it’s probably worth checking in with a professional. These new rules won’t just affect whales or full-time traders. If you’ve made any gains at all, it’s better to be ahead of the curve before HMRC comes knocking.
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Key Takeaways
- Starting January 2026, HMRC will require crypto platforms to collect and report personal data from UK users to improve tax enforcement.
- Details like full name, address, date of birth, and national insurance number must be submitted by platforms to HMRC.
- The changes align with the OECD’s Crypto-Asset Reporting Framework, meaning overseas exchanges serving UK users must comply too.
- Penalties for users include interest, fines, or even criminal charges for failing to report taxable crypto gains correctly.
- With the CGT allowance now only £3,000, even small crypto profits could be taxed, making tracking and tax tools more important than ever.
The post HMRC to Require Crypto Users to Share Personal Info Starting 2026 appeared first on 99Bitcoins.
