All crypto services operating in the U.K. will be required to collect detailed information about users and transactions, including internal reporting requirements.
Starting January 1, 2026, U.K.-based crypto services will be subject to a new mandate under the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). For the first time, the international standard includes mandatory internal reporting for U.K. residents.
Under CARF, crypto services must collect data on all users, both individuals and legal entities, including companies, trusts, charities, and partnerships, as well as on every transaction conducted by users from the U.K. or other jurisdictions applying the CARF rules.
For individuals, the following data must be collected:
- full name;
- date of birth;
- home address;
- country of tax residence;
- for U.K. residents, their National Insurance number or Unique Taxpayer Reference (UTR);
- for non-U.K. residents, their tax identification number (TIN) and the country where it was issued.
If the user’s country doesn’t issue a TIN, the requirement is waived.
For legal entities, the required data includes:
- registered business name;
- official registration address;
- for U.K. companies, their company registration number;
- for non-U.K. companies, their TIN and the country where it was issued.
In some cases, information about controlling persons must also be provided.
For each transaction, the following must be reported:
- transaction value;
- type of crypto-asset;
- type of operation;
- number of asset units.
Crypto services are required to verify the accuracy of the collected information using due diligence procedures. Incomplete, incorrect, or unverified reports may result in fines of up to £300 per user.
HM Revenue & Customs (HMRC) will publish updates and guidance on implementing CARF. Businesses subject to the new rules are advised to begin preparing and collecting data in advance to ensure full compliance when the regulation comes into force.
The U.K. and the U.S. remain among the world’s leading crypto hubs, dominating global transfers using BTC, ETH, and USDC, according to the Bank for International Settlements.
