New regulation will force crypto companies—local and foreign platforms serving UK customers—to collect and submit sensitive data. According to the notice, the updates require passport details, bank account number, all proofs of identification, and more. This requirement also refers to businesses, charities, and trusts using these platforms.
By not adhering to the requirement or supplying any erroneous data, you may be fined £300 per user. HMRC warned that repeat offenders may face even harsher enforcement actions. The government has told crypto firms to start gathering data needed for law compliance. Though the official start date is a year away, crypto firms are encouraged to prepare.
This initiative adopts the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), which will streamline the international sharing of crypto data by countries for tax purposes.
Chancellor Rachel Reeves has also supported another bill brought in April to regulate crypto exchanges, custodians, and broker-dealers. In her statement, she highlighted the government’s dual desire for guarding innovation and clamping down on money laundering. “Britain is open for business — but closed to fraud, abuse and instability.”
As the UK strengthens its internal crypto controls, it is taking a somewhat more lenient approach than the European Union. The UK will enable the issuance of stablecoins without limits of volume or registration. The EU, on the other hand, started the Markets in Crypto-Assets Regulation (MiCA), which will constrain stablecoins.
As crypto adoption accelerates, the UK government seems to be moving towards a fully regulated and transparent financial ecosystem. Thus, 12% of UK adults own crypto in 2024.
The UK just proposed a major shift in #cryptoasset regulation. 📄
— MiCA Crypto Alliance (@MiCA_Alliance) May 9, 2025
The draft rules from @HMTreasury bring trading, custody, #staking and #stablecoins under existing UK financial laws, embedding crypto into the #FSMA framework rather than building a separate regime.
A few key… pic.twitter.com/rLAtrioeay
The full reporting of crypto transactions required in the UK shows movement in the direction of stronger regulations and taxation. On one hand, this would place additional obligations on crypto companies. On the other hand, it would bring more legitimacy to the crypto space. As 2026 approaches, there is a need for platforms and users to prepare for a transparent crypto world in the UK.
