The UK government is scheduled to tighten compliance with encryption companies by deepening organizational governance on the sector. In the new instructions issued to improve tax compliance, encryption companies in the United Kingdom have been directed to collect user details, including transactions data under the reporting of encrypted assets (Carf). The Paris Economic Development Organization (OECD) has announced the CARF legislation in October 2023, and the UK would like to build these rules before plans to enter the encryption lists by 2026.
Curd companies to collect user details, including transactions data
New instructions Release By the UK government, encryption companies directed to collect names, birth date and home addresses for retail users. Other information such as the country of residence, the national insurance number, and the unique taxpayer reference, must also be collected from the encryption buyers and their holders.
For business users, encryption companies must maintain legal business names, major business addresses and company registration numbers, according to the announcement.
“Depending on the information you collect, you may need to provide a report to the revenues and customs of His Majesty (HMRC) every year,” advertisement He said.
When dealing with transactions details, encryption companies will have to maintain data records, including the value of money and the type of encryption used in instructions.
The advertisement added: “You will need to verify that the information you collect accurate by conducting due care. We will update the directives with information on how to do this in time.”
UK officials said that the encryption companies in a violation of these laws can call sanctions of up to 300 pounds (about 35,000 rupees) for each user.
Companies must harmonize their operations in accordance with CARF laws by January 1, 2026
The UK actively participates in the organizational scene of the global advanced encryption. The UK’s Financial Behavior Authority (FCA) aims to wine national encryption by 2026.
Meanwhile, the Wisdom Organization Authority at the Bank of England (Bank of England) has instructed UK -based companies to unveil its exposure to encryption.
The Bank of England also joined the New York Financial Services (DFS) to exchange senior officials in employees with efficiency in sector management such as digital assets and emerging payments.
In recent months, the United States -based Coinbase and the Austrian Bitpanda have secured FCA approvals in the United Kingdom to legitimize their business.
The British Treasury Department also explained that the country is not planning to create a US -like national encryption reserve.
