On 14 May 2025, HMRC released initial high-level guidance for crypto-asset service providers in the UK. Following the UK’s adoption of these rules, providers of crypto-asset services in the UK will face new obligations starting 1 January 2026. UK-based providers will need to gather information about their users - both individuals and entities - as well as details of their crypto-asset transactions. Service providers will report customer and transaction information to HMRC for users who are tax resident in the UK or one of 50+ jurisdictions participating in the OECD’s Crypto-Asset Reporting Framework (CARF).
Of particular note, HMRC’s guidance indicates the maximum penalty for non-compliance will be £300 per customer. This penalty may particularly apply if a crypto-asset service provider (CASP) fails to collect documentation from customers after 1 January 2026 and subsequently effectuates a transaction in crypto-assets.
The requirement to collect self-certifications from customers begins on 1 January 2026, with the first reports due to HMRC by May 2027. HMRC are expected to provide more detailed guidance in the future.
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