The UK just made Bitcoin surveillance mandatory
https://youtu.be/RFbwMpMe6xU?si=pV0XcXPSDWqi9X0s
CAFR-aligned reporting will target cryptocurrency transactions, with traders and exchanges facing penalties for missing information, and consultations on DeFi taxation continue.
The UK government has confirmed that cryptocurrency traders will be required to report personal details to trading platforms from 1 January 2026. The move forms part of the Cryptoasset Reporting Framework (CAFR), aligned with an OECD agreement, and aims to improve compliance with existing tax rules.
Under the framework, exchanges must provide HM Revenue & Customs (HMRC) with customer information, including cryptocurrency transactions and tax reference numbers.
Traders who fail to supply required details could face fines of up to £300, while platforms may be fined the same amount per unreported customer. HMRC expects to raise up to £315 million by 2030 from the new reporting rules.
Experts warn exchanges may face challenges collecting accurate information, potentially passing compliance costs onto users. Some investors may initially turn to noncompliant platforms, but international standards are expected to drive global alignment over time.
https://dig.watch/updates/uk-to-require-crypto-traders-to-report-details-from-2026