Are you and your business ready for the biggest shake‑up in crypto‑asset reporting since Bitcoin launched?

From 1 January 2026, HMRC is requiring new levels of transparency for cryptocurrency owners. If you’re involved in crypto even as a small UK business these rules could reshape how you do things.

Why This Matters to You

• HMRC is getting more data: Crypto exchanges and platforms must now share names, addresses, tax IDs, transaction types, values, and volumes (HMRC Guidance)
• Penalties are being given: Inaccurate or missing crypto reporting can cost up to £300 per user or transaction. If you facilitate lots of transactions, it’s easy to see how this could quickly get expensive.
• It’s Global: The Organisation for Economic Cooperation and Development (OECD) is guiding regulations in over 60 jurisdictions and has published the Crypto‑Asset Reporting Framework (CARF). This is a name you will start hearing crop up more and more in cryptocurrency circles.

If you handle crypto assets, even part‑time, you’ll need to act.

What’s Changing: The Core Rules

1. Who’s Covered

From 1 January 2026, any business that:

• Transacts crypto for customers,
• Provides services that enable transactions,
• Operates in or has a UK presence,
  must register as a Reporting Crypto-Asset Service Provider (RCASP)

2. What You Must Collect

For individuals:

• Full name, date of birth (DOB), address, country of tax residence, and National Insurance (NI) number (or UTR)

For business users:

• Legal name, address, registration or tax ID, country of residence, and details of controlling persons if needed.

For transactions:

• Type of crypto asset, transaction kind, value, date, and number of units.

3. When to Start

Data collection begins 1 January 2026.
Your first report (covering Jan-Dec 2026) must be submitted by 31 May 2027 via HMRC’s online service in an XML format.

4. Due Diligence & Accuracy

It’s not just about collecting information. It’s also about verifying the information. Penalties apply for missing or false data. This is to encourage accurate and transparent disclosure, and reduce fraud & financial crime.

Why This Matters to Your Business

Greater Trust

It shows your business is serious about compliance and protecting users. A trustworthy reputation can be an advantage in an ever competitive crypto market.

Compliance Risks

Mistakes or delays can trigger penalties and draw unwanted scrutiny from HMRC. So complying is the best way to keep your service quick and efficient for customers, because non-compliance costs more in the long run.

Internal Readiness

You’ll need clear processes, data systems, and trained staff to capture, verify, and report.

Steps to Prepare Today

1. Map your data flows
   • Which crypto services do you offer?
   • What data is captured, stored, and processed?
2. Upgrade your systems
   • Can your customer database store tax IDs and verify details?
   • Are transaction logs detailed and time-stamped?
3. Start gathering data now
   • Begin onboarding customers with CARF-compliant info now, and don’t wait until 1^st January.
4. Register with HMRC
   • Make sure you sign up before 31 January 2027 and notify users about the data-sharing obligations
5. Train your team
   • Staff should know what info needs to be collected before every transaction, to ensure it is compliant.
6. Test your reporting formats
   • HMRC’s system is not fully live yet, so checking your XML formatting in advance, will help you get ahead of the curve.

Everyday Scenarios to Watch

• John, a freelance trader using your platform? You must have his name, NI number, address, DOB, and then include every trade in your report.
• Blackwood Ltd, a small business customer of your crypto exchange? You need their company registration number, corporate address, and to declare each crypto inflow/outflow.
• Incomplete self-certification? You cannot process them or risk fines up to £300 for each missing form.

A Realistic Timeline

These requirements mark a turning point in crypto‑asset regulation. You don’t want to be caught off guard. Being proactive now will help you avoid fines, build credibility, and focus on what matters serving customers and growing your business.

Want a Helping Hand?

If this feels overwhelming, you’re not alone.

RedBrick helps crypto‑involved businesses:

• Set up compliant data collection and reporting frameworks,
• Train staff on accurate due diligence,
• Prepare their first CARF submissions and flag risks early.

Let us be the home for your business finances with no jargon, just clarity.

For a better home for your business finances, email: hello@redbrickaccounting.com