The UK government has mandated cryptocurrency exchanges to report customer transactions starting January 1, 2026. This new regulation, overseen by HM Revenue and Customs (HMRC), will require exchanges to collect comprehensive transaction data for all UK customers. This information must be shared with HMRC the following year for verification purposes, compliance monitoring, and potential enforcement actions. UK regulations follow a similar framework as the OECD’s Crypto-Asset Reporting Framework (CARF), which aims to increase transparency within the digital asset market. This approach is being adopted in countries like the EU, Canada, Australia, Japan, and South Korea, where CARF has been implemented.