The UK government is implementing a new regulatory framework for cryptocurrencies by mandating transaction reporting, effective January 2026. This regulation aims to increase transparency in the industry and align crypto transactions with traditional financial systems. The initiative will require crypto platforms to collect comprehensive user data for each transaction. HMRC, along with the Financial Conduct Authority (FCA), are responsible for implementing these new requirements. Non-compliance could result in penalties up to £300 per user. This move aligns the UK’s regulatory framework with global trends like the EU’s MiCA rules and reflects a coordinated effort within the OECD to standardize crypto transaction reporting.