The UK has declared a fresh crackdown on cryptocurrency holdings. The concept compels digital asset providers, including exchanges, to provide precise financial information about UK taxpayers.
Major Shift In Crypto Trading Oversight
According to the Financial Times, cryptocurrency holders have been cautioned that, starting January 1, 2026, major cryptocurrency exchanges will be mandated to collect extensive transaction records from their UK customers.
This includes crucial details such as purchase prices, selling amounts, and profits accrued from these transactions, as part of a broader initiative to combat tax avoidance.
His Majesty’s Revenue & Customs (HMRC) will gain further visibility into the financial activities of cryptocurrency holders as these exchanges are tasked with recording and eventually sharing this information directly with the tax authority. By 2027, HMRC will receive these detailed reports.
Experts have issued a warning to individuals trading in digital currencies—from Bitcoin (BTC) and Ethereum (ETH) to lesser-known tokens—to ensure they are accurately reporting their profits in their self-assessment tax returns.
Seb Maley, CEO of tax insurance provider Qdos, emphasized that this development represents a fundamental shift in how digital asset trading is monitored from a tax perspective. “HMRC will soon know exactly who is making gains—and how much,” he stated.
Maley noted that anyone involved in cryptocurrency must ensure that they are documenting their gains on their tax returns, as the new regulations will enable HMRC to cross-check this information against the records received from platforms.
Turkmenistan’s New Law on Digital Assets
In Asia, Turkmenistan has officially moved towards embracing digital assets by enacting a new law that legalizes and regulates cryptocurrencies, including provisions for licensing digital asset exchanges and mining entities.
This significant development was reported by the state media on Friday, following the signing of the law by President Serdar Berdymukhamedov. The legislation is set to take effect on January 1, 2026.
One of the alleged reasons behind this move is Turkmenistan’s desire to diversify its economy, which has long relied heavily on exporting natural gas, primarily to China.
A government spokesperson told Reuters on Friday that the newly implemented law aims to attract investment and foster digitalization within the country, aligning with global trends in the digital economy.
The legislation outlines regulations governing the creation, storage, placement, utilization, and circulation of virtual assets in Turkmenistan. It also clarifies the legal and economic status of these assets, marking a significant step toward establishing a structured framework for the digital asset industry.
Featured image from DALL-E, chart from TradingView.com