The United Kingdom will introduce strict regulations mandating cryptocurrency firms to collect and report detailed personal data from their users beginning January 1, 2026. This initiative is spearheaded by Her Majesty’s Revenue and Customs (HMRC) to address tax evasion concerns in the booming digital asset sector.

With the rapid expansion of the cryptocurrency market, the UK government is intensifying its efforts to regulate the industry and ensure compliance with tax obligations. The new rules could significantly impact how cryptocurrency businesses operate and manage user data, aiming for greater transparency and accountability.