The United Kingdom The tax authority will require digital asset companies to collect and report data from each customer trade and transfer from 1 January 2026, as part of a broader effort to improve the reporting of digital access and fight evasion.
According to a 14 May message By HM Revenue & Customs (HMRC), the British Government’s new data collection plan complies with the introduction of Organization for Economic Cooperation and Development (OECD) Cryptoasset Reporting Framework (CARF)– a global initiative for the taxpayer’s designed to set a standard for tax reporting and improve exchange of information between countries on crypto access transactions, to fight tax evasion.
According to the incoming changes, digital asset companies must collect detailed information about all UK users – individual companies – including names, date of birth, home address, residential country, legal company name and main business address.
When it comes to it TransactionsCompanies will also need to gather information about the value, type of digital access, type of transaction and number of units for each trade and transfer.
The new requirements will kick in on January 1, 2026, but the British tax authority suggested that digital asset companies “may want to start collecting information earlier, so that you are ready when the new rules come into force.”
Failure to comply with the new rules, including incorrect, incomplete or unverified reports, can lead to penalties of up to £ 300 ($ 401) per user, HMRC warned.
Therefore, companies will also need to perform Due diligence to verify that the information they collect is correct, says HMRC, adding that they would “update the guidance with information on how to do this on time.”
Britain’s adoption of CARF is part of a broader effort of the country to improve transparency in Digital Asset Tax Reporting And establish a more robust regulations to protect consumers and make the UK a digital asset hub.
Britain’s changing regulatory landscape
In April Published Draft digital asset regulation and indicated that it is planning to work with the United States to support innovation in the digital asset industry.
“Through our change of change, we make Britain the best place in the world to renew – and the safest place for consumers,” Chancellor of the Tax Rachel Reeves said, in April 29 statement. “Robust rules on crypto will increase investors’ trust, support the growth of fintech and protect people across the UK.”
According to the new drafts of rules, digital exchange exchanges, retailers and agents would be conducted under the UK’s regulatory regulation of financial services and digital asset companies with British customers must meet clear standards for openness, consumer protection and operational resistance – “just like companies in traditional financing,” Treasury said.
The proposal rules would also provide clear definitions for digital assets and extend existing financial regulations to companies involved.
Treasury draft was short on details, but on the subject Stablecoins– A highest priority for many regulators and legislators around the world in recent months – it gave some clarity, and found that Stablecoin issuers would only be subject to regulation if they are based in the country.
The government said it was aimed at completing the new legislation at the end of the year and that the rules would build on the first Treasury described in a February 2023 Consultation on the future regulatory regime for cryptoassettes.
Watch: Reggie Middleton at Defi, Booms/Busts & Crypto Regulation
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