UK CONFIRMS NEW CRYPTO REPORTING RULES

Summary from the TLDR Crypto newsletter

The UK's 2025 Budget confirms Cryptoasset Reporting Framework implementation from January 1, requiring UK-registered exchanges to collect customer cryptocurrency transactions and tax reference numbers, with HMRC forecasting £315 million ($417.3 million) in additional tax revenue by April 2030. Investors failing to provide details face £300 fines, while exchanges risk £300 per unreported customer, and information collected in 2026 will be reported to HMRC in 2027 to verify capital gains tax compliance. Experts warn compliance costs will be passed to customers as exchanges struggle to collect tax details from wary users, potentially driving some traders toward noncompliant platforms until international alignment creates a crypto equivalent to Common Reporting Standard and FATCA. Separately, HMRC published a summary indicating the government leans toward recognizing DeFi lending and staking as taxable only when gains are realized through fiat conversion, though no final decision or timeline has been set.