New UK Crypto Assets Tax Regulations: Mandatory Declaration from 2026, with a Maximum Fine of £300 for Tax Evaders

On July 8, 2023, HMRC announced that starting from January 2026, the "Crypto Assets Reporting Framework" will be implemented, requiring digital asset service providers to collect and report investors' personal information and transaction records. This new regulation marks a new phase in the UK's Crypto Assets regulation, aimed at combating the increasingly serious tax evasion.

According to the new regulations, Crypto Assets platforms must collect users' basic information, including name, address, date of birth, tax residency, national insurance number, and transaction summaries. HMRC expects that by 2030, this measure will generate an additional £315 million in tax revenue, equivalent to the annual salary of 10,000 nurses. Individual investors who fail to comply with information declarations will face fines of up to £300 (approximately $409); service providers who fail to report as required will also be penalized.

James Murray, an official from the Treasury, emphasized that this move aims to ensure tax fairness and raise funds for public services. Jonathan Athow, the Director of Tax Design at HMRC, clarified that the new regulations do not introduce a new type of tax but rather strengthen the enforcement mechanisms of the existing capital gains tax. He advised investors to organize their transaction records in advance to avoid potential tax disputes in the future.

This new tax policy is an important part of the UK's comprehensive Crypto Assets regulatory framework. In May of this year, the UK's Financial Conduct Authority (FCA) sought opinions on the regulation of Crypto Assets trading platforms, DeFi, and other areas.

Previously, the policy document released by the Ministry of Finance showed that the UK is establishing a regulatory framework that includes transparency, consumer protection, and operational stability, following traditional financial standards, striving to support industry innovation while preventing risks.

Analysts point out that the UK's policy direction echoes the international tax standards set by the OECD, which may promote cross-border tax information sharing in the future. As the 2026 implementation deadline approaches, Crypto Assets service providers need to quickly adjust their compliance systems, while investors should pay attention to the preservation of transaction records and reporting obligations to cope with the upcoming regulatory new era.

(HMRC new regulations #OECD tax standards