UK to Mandate Crypto Reporting by 2026, Aiming for Enhanced Transparency

The UK government is set to implement a new framework for reporting crypto transactions by 2026, known as the Crypto Asset Reporting Framework (CARF). This initiative, spearheaded by His Majesty’s Revenue and Customs (HMRC), aims to increase financial transparency within the cryptocurrency industry. The framework mandates that service providers collect extensive user information, including legal identification details and transaction histories, with penalties of up to £300 per user for non-compliance. This action aligns UK regulations with international standards and seeks to curb tax evasion in the crypto space.