UK Tightens Crypto Rules, Requiring Transaction Reporting from 2026

The United Kingdom is enacting new regulations for the cryptocurrency sector, requiring firms to report every transaction and identify their users. This move comes as cryptocurrencies seek to establish financial freedom for individuals, but the UK government aims to combat tax evasion through increased scrutiny. Starting in 2026, all transactions involving crypto will need to be reported with user identification details, a significant shift from current anonymity-focused systems. This measure aligns with the OECD’s Crypto-Asset Reporting Framework and introduces stricter KYC (know your customer) requirements for cryptocurrency businesses.