U.K. Tightens Crypto Data Rules Amid Security Concerns
Just as a crypto platform revealed a data leak, the U.K. announced new rules requiring detailed personal data collection from crypto users.
Effective January 1, 2026, the U.K. will mandate crypto firms to track every customer and transaction. This move is part of efforts to bring openness to the industry, often criticized for lack of accountability.
HM Revenue and Customs announced these changes on May 14. Crypto firms will need to gather full names, addresses, dates of birth, and tax IDs for individual users. Companies, partnerships, and charities must also provide legal names, addresses, and registration numbers.
These rules apply to all transactions, including those between wallets. Firms will submit annual reports. Non-compliance could result in fines up to £300 per user.
Officials say this protects consumers and aligns the U.K.with global standards like the European MiCA regulation.Mark Aruliah,from Elliptic,views this as a maturing step for the industry.
But critics worry about data security.Coinbase, a major crypto exchange, recently confirmed a breach were contractors were bribed, exposing sensitive user data.
While Coinbase claims the breach was caught quickly, blockchain investigator ZachXBT flagged earlier issues. The new U.K. rules could mean firms face millions in fines if not compliant.
This new regulation raises questions about crypto companies’ ability to handle user data safely.
