UK Budget Overhauls Crypto Reporting as Exchanges Set to Record Extra User Data

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The UK government’s 2025 Budget confirms that, as of January 1, 2026, cryptocurrency exchanges registered in the UK will be required to collect detailed personal and transaction information from their customers.

Under the new rules, aligned with the UK’s introduction of the Crypto‑Asset Reporting Framework (CARF), platforms must record identifiers for individual and entity users. For individuals, this includes their name, date of birth, home address, country of residence, and tax reference numbers. For entities, this includes business name, address, and registration number. 

The UK government says that, for each transaction, cryptoasset service providers must collect information about the value, type of cryptoasset, type of transaction, and number of units. Inaccurate, incomplete, or unverified reports will entail penalties of up to £300 (approximately $396).

The government estimates the change could yield an additional £315 million (approximately $415.8 million) in tax revenue by April 2030. Analysts warn, however, that increased compliance costs may be passed on to customers, and some crypto traders may seek non-compliant platforms to avoid reporting.

The UK government also recently published the long-anticipated outcome of its consultation on DeFi taxation, which seems to favor only considering realized gains as taxable events. However, no final decision has yet been made.

The decision follows a broader pattern of expanding regulatory frameworks to include digital assets.