• UK crypto rules now require exchanges to report all user transactions to HMRC starting immediately.
• International sharing of crypto tax data will begin in 2027 under a global reporting framework.
• New rules remove anonymity for investors and aim to increase compliance with tax laws.

The United Kingdom has introduced new rules for cryptocurrency reporting. These measures target undeclared income from digital assets. Crypto exchanges must now collect detailed information from users. This includes purchase prices, sales data, capital gains, and tax-related information. All collected data will be submitted directly to HM Revenue & Customs. The rules aim to provide authorities with greater certainty in international crypto transactions.

The changes form part of the Cryptoasset Reporting Framework. The framework was developed by the Organisation for Economic Co-operation and Development. It is designed to standardize reporting across countries. The UK is among the first 48 nations to implement the system. 

Exchanges will begin collecting user data immediately. International sharing of this information will start in 2027. At that point, HMRC will exchange tax data automatically with other participating countries. HMRC  recently issued nearly 65,000 crypto tax warning letters in 2024–25, doubling the year’s total.

Impact on Crypto Investors

The new rules remove anonymity protections previously available to crypto holders. Tax authorities will now have a clear view of cross-border transactions. Many investors will need to adjust their reporting practices to remain compliant. The government expects higher compliance and more accurate tax declarations. 

Previous enforcement efforts revealed that a significant number of investors were not reporting gains correctly. Automated reporting systems aim to address this gap. Analysts note that the framework may reshape investor behavior in the UK market. Earlier last year, it was announced that UK crypto firms must report user transactions from Jan 1, 2026 under OECD rules.

Strengthened International Collaboration

The UK has also expanded cooperation with the United States on crypto regulation. A joint taskforce was established in September 2025. Its focus is improving anti-money laundering standards and supervision of crypto firms operating in both countries. 

The taskforce includes regulators and industry experts. Recommendations are expected within 180 days of formation. Over 75 countries have agreed to adopt the framework. Key financial hubs, including Singapore, Switzerland, Hong Kong, and the UAE, will implement reporting later this decade.

Regulatory Goals and Industry Outlook

The UK government focuses on consumer protection and regulatory transparency in businesses. The financial conduct authority imposes strict requirements that crypto firms have to fulfill. Authorities are trying to attract companies and provide compliance and transparency. The framework is supposed to bring about skilled employment in the regulated sector. 

Companies will be allowed time to adapt before full control is imposed. Brexit has enhanced UK relations with Wall Street where coordinated regulation has become even more imperative. This plan is the most extensive attempt to control digital assets in the UK.