The UK government has announced new tax transparency rules requiring crypto firms to report comprehensive customer data on all transactions starting January 1, 2026. The move aligns with the OECD’s Cryptoasset Reporting Framework (CARF) and aims to increase global oversight of digital asset trading while curbing tax evasion. The new reporting standards demand details such as a user’s full name, address, tax identification number, cryptocurrency type, and transaction amount for every trade. Entities including trusts, charities, and corporations are also subject to the stricter requirements. Failure to comply with these data-reporting regulations could result in penalties of up to £300 ($398.40) per user as per HMRC’s statement.