The UK government has confirmed that starting January 1, 2026, cryptocurrency trading platforms must collect personal details from their customers. This new rule, part of the Cryptoasset Reporting Framework (CAFR) established in an OECD agreement, requires exchanges to report information such as transaction histories and tax reference numbers to HM Revenue & Customs (HMRC). Fines for non-compliance could reach £300 ($397) for individuals and £300 per unreported customer for exchanges. This move is expected to generate an additional £315 million ($417.3 million) in tax revenue by April 2030. Experts predict that these requirements will increase operational costs for trading platforms, likely resulting in higher fees for customers. Dion Seymour from Andersen noted that exchanges might struggle to gather the necessary information, as crypto users are often reluctant to disclose personal data. David Lesperance from Lesperance and Associates anticipates a shift to noncompliant platforms as some traders seek to evade taxes, similar to trends in traditional banking. Despite the initial resistance, Lesperance believes international standards will eventually push jurisdictions toward unified reporting requirements. In addition to the reporting rules, the 2025 Budget hinted at a potential change in how the UK handles taxes on decentralized finance (DeFi) activities, particularly around lending and staking. HMRC is considering adopting a "no gain, no loss" approach, where taxable events would only occur when cryptocurrencies are sold for fiat, but no final decision has been made. The government intends to continue discussions with stakeholders to refine its stance on this matter.