The UK introduces mandatory CARF-based data collection from 2026 – HMRC requires user and transaction reporting in accordance with the Cryptoasset Reporting Framework. Starting January 1, it requires full identification of individuals and entities, including TIN, and UTR, and collection of information on controlling persons, and transaction-level data such as asset type, transaction type, quantity, and value.
Tightening of Crypto Regulations in the UK Starting 2026
The UK is advancing crypto initiatives, but at the same time, some of them are witnessing a tightening of regulations. In particular, starting in 2026, crypto-related reporting will become significantly broader and mandatory under the Cryptoasset Reporting Framework (CARF) issued by HM Revenue & Customs.
Specifically, CARF requires the collection of information on all individual users and entity users (including companies, partnerships, trusts, and charities).
For individual users, it is mandatory to provide name, date of birth, address, country of residence, and a tax identification number: either a National Insurance number or Unique Taxpayer Reference for UK residents, or a tax identification number (TIN) and the country of issuance for non-UK residents. If the country does not issue TINs, this requirement is waived.
For entity users, the requirements differ and include the legal business name, main address, company registration number (for UK companies), or TIN and issuing country (for non-UK entities), and, if applicable, information on the controlling person.
Additionally, for each crypto assets transaction, the following must be recorded:
- type of crypto asset
- type of transaction
- number of units
- value of transaction
In cases of incomplete, inaccurate, or unverified reporting, a penalty of up to £300 per user may be imposed. Imagine if it’s thousands or millions of users.
Conclusion
There are different ways to view this: on one hand, the tightening of rules could significantly slow down crypto adoption in the UK; on the other, it may help establish a more unified regulatory environment for sustainable development and institutional investors’ confidence.
Which scenario becomes reality will depend on the broader mix of political and economic measures, as well as investor attention in the country’s economy.
