UK Crypto Rules Require Providers to Collect Customer Home Addresses

The United Kingdom’s implementation of its crypto reporting framework took effect Jan. 1, 2026. Cryptoasset service providers must collect identity and transaction data used to connect crypto activity with customers’ tax records. For Bitcoin (BTC), that puts a focus on how records held by providers could intersect with activity visible on a public ledger.

For individual users, providers must gather a name, date of birth, home address and country of residence, plus a tax identification number when one can be issued. For UK residents, that number may be a National Insurance number or Unique Taxpayer Reference. Transaction records must include the value, asset type, transaction type and number of units.

Collection applies to all users, but reporting covers a narrower group. Providers submit user details and transaction summaries to HM Revenue & Customs (HMRC), the UK tax authority, for customers who are tax-resident in the UK or another jurisdiction participating in the Crypto-Asset Reporting Framework (CARF). CARF is an international framework for tax authorities to exchange information about cryptoasset activity.

The UK plans to exchange CARF information with participating jurisdictions by Sept. 30, 2027. The first reports cover activity from Jan. 1 through Dec. 31, 2026, and are due between Jan. 1 and May 31, 2027.

Bitcoin’s transaction record is public and permanent. A wallet address does not inherently reveal who owns it, but once linked to an identified customer, the transactions associated with that address can be viewed. Routine CARF reports do not include actual external wallet addresses.

For a reportable user's transfer to a wallet not known to be associated with a crypto service provider or financial institution, providers must retain the address or equivalent identifier for at least five years after the reporting period ends. Tax authorities can request those records later. Retention creates a possible way to connect customer information with on-chain activity, while routine submissions do not themselves provide a list matching each customer to Bitcoin wallet addresses.

The issue is related to a separate UK proposal to let HMRC request customer records directly from providers. The first CARF reports are due starting Jan. 1, 2027.