{"id":27550,"date":"2025-05-19T19:01:55","date_gmt":"2025-05-19T19:01:55","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=27550"},"modified":"2025-05-19T19:01:55","modified_gmt":"2025-05-19T19:01:55","slug":"uk-government-asks-crypto-firms-to-collect-user-data-from-2026-hefty-fine-for-misreporting","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=27550","title":{"rendered":"UK Government Asks Crypto Firms to Collect User Data from 2026, Hefty Fine for Misreporting"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400\">The UK has been introducing back-to-back crypto reforms through HM Revenue and Customs (HMRC). The UK government has introduced another sweeping regulatory move, driven by the adoption of the Organisation for Economic Co-operation and Development\u2019s (OECD) Cryptoasset Reporting Framework (CARF). Starting 1 January 2026, all crypto firms will have to collect and disclose detailed user and transaction data.\u00a0<\/span><\/p>\n<p>\u201cFrom 1 January 2026 if you provide cryptoasset services in the UK, you\u2019ll have new responsibilities for collecting data and reporting it to <abbr title=\"HM Revenue and Customs\">HMRC,\u201d <a href=\"https:\/\/www.gov.uk\/guidance\/reporting-cryptoasset-user-and-transaction-data\" target=\"_blank\" rel=\"nofollow\">the 14 May 2025 announcement said.\u00a0<\/a><\/abbr><\/p>\n<p><span style=\"font-weight: 400\">All cryptoasset service providers \u2013 both domestic and foreign platforms serving UK clients \u2013 must collect and report extensive information on every user and every transaction. This will include address, country of residence, national insurance number, unique taxpayer reference, and more.\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The UK is going to require crypto firms to report all user transactions starting Jan 2026<\/p>\n<p>Non-compliance may cost \u00a3300 per user<\/p>\n<p>Compliance would actually end up costing more than that due to current rates <\/p>\n<p>KYC and AML are the enemy of crypto <a href=\"https:\/\/t.co\/uQU1Lbnupb\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/uQU1Lbnupb<\/a><\/p>\n<p>\u2014 Tall (@tall_data) <a href=\"https:\/\/twitter.com\/tall_data\/status\/1924167547584168261?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">May 18, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>Explore:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/crypto-presales\/\" rel=\"\">The 12+ Hottest Crypto Presales to Buy Right Now<\/a><\/strong><\/p>\n<h2><strong>Hefty Penalty for Non-Compliance<\/strong><\/h2>\n<p><span style=\"font-weight: 400\">Failure to comply with the new rules introduced by the UK government, or failure to submit inaccurate or incomplete data, will expose firms to significant penalties. HMRC has set fines at up to <\/span><span style=\"font-weight: 400\">\u00a3300 per user for misreporting, a figure that could quickly escalate for platforms with large user bases. <\/span><\/p>\n<p><span style=\"font-weight: 400\">According to the government, the UK intends to enhance tax compliance and crack down on illicit activity. The government also intends to align crypto oversight with traditional banking standards. <\/span><span style=\"font-weight: 400\">For this, the companies will have to report the value of the transaction, type of cryptoasset, eg Bitcoin, Ethereum, and more.\u00a0<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:<\/span><\/strong>\u00a0<a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-solana-meme-coins\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Top Solana Meme Coins 2025: 7 Best Buys Updated<\/span><\/a><\/p>\n<h2 class=\"nnbtc-header__title\">UK Decides to Align with US Rather than EU Over Crypto Regulation<\/h2>\n<p>Amidst fear of losing ground to global fintech hubs, the\u00a0<a href=\"https:\/\/www.gov.uk\/government\/news\/new-cryptoasset-rules-to-drive-growth-and-protect-consumers\" target=\"_blank\" rel=\"nofollow noopener nofollow\">UK has announced<\/a>\u00a0new draft regulations for the crypto sector.<\/p>\n<p>On 29 April 2025,\u00a0Finance Minister Rachel Reeves said, \u201cThrough our Plan for Change, we are making Britain the best place in the world to innovate \u2013 and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.\u201d<\/p>\n<p>The government is now introducing compulsory regulation for crypto exchanges, dealers, and agents.<\/p>\n<p>Importantly, the UK has decided to align with the US, treating crypto assets as securities. This marks a departure from the EU\u2019s Markets in Crypto-Assets (MiCA) framework, which took effect in December 2024.<\/p>\n<p>\u201cThe Chancellor also revealed that the UK and US will use the upcoming UK \u2013 US Financial Regulatory Working Group to continue engagement to support the use and responsible growth of digital assets,\u201d\u00a0<a href=\"https:\/\/www.gov.uk\/government\/news\/new-cryptoasset-rules-to-drive-growth-and-protect-consumers\" target=\"_blank\" rel=\"nofollow noopener nofollow\">the UK government website said.\u00a0<\/a><\/p>\n<p>The government aims to finalize the legislation by the end of 2025.<\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400\">    <\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h3>\n<p><span style=\"font-weight: 400\">    <\/p>\n<ul class=\"nnbtc-key-takeaways__list\">\n        <\/ul>\n<p><\/span><\/p>\n<p><span style=\"font-weight: 400\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         According to the government, the UK intends to enhance tax compliance and crack down on illicit activity.\u00a0<\/li>\n<p><\/span><\/p>\n<p><span style=\"font-weight: 400\"><br \/>\n    <\/span><\/p>\n<p><span style=\"font-weight: 400\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        \u00a0 HMRC has set fines at up to \u00a3300 per user for misreporting, a figure that could quickly escalate for platforms with large user bases.\u00a0<\/li>\n<p><\/span><\/p>\n<p><span style=\"font-weight: 400\"><br \/>\n    <\/span><\/p>\n<p><span style=\"font-weight: 400\"><br \/>\n    <\/span><\/p>\n<p><span style=\"font-weight: 400\">    <\/span><\/p>\n<\/div>\n<p>    <\/span><\/p>\n<p>\u00a0<\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/uk-government-asks-crypto-firms-to-collect-user-data-from-2026-hefty-fine-for-misreporting\/\">UK Government Asks Crypto Firms to Collect User Data from 2026, Hefty Fine for Misreporting<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The UK has been introducing back-to-back crypto reforms through HM Revenue and Customs (HMRC). The UK government has introduced another sweeping regulatory move, driven by the adoption of the Organisation for Economic Co-operation and Development\u2019s (OECD) Cryptoasset Reporting Framework (CARF). Starting 1 January 2026, all crypto firms will have to collect and disclose detailed user [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-27550","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27550"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27550\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}