The UK is preparing for stricter cryptocurrency regulations with the implementation of new rules starting January 1, 2026. The Financial Conduct Authority (FCA) introduced a comprehensive reporting framework for crypto firms operating within the country. This framework, known as the Crypto-Asset Reporting Framework (CARF), aims to combat tax evasion and ensure greater transparency in the cryptocurrency industry. Under these new rules, UK-based and international crypto platforms will be required to compile detailed user data, including identification information, address details, and taxpayer ID numbers. Additionally, they must document all transactions involving users based in the UK or CARF-participating countries, recording transaction amounts, asset types, quantities, and transfer nature. Failure to comply with these reporting requirements could lead to penalties of up to £300 for each individual user.