U.K. Introduces Complete crypto Data Rules Amidst Security Concerns
As the United Kingdom looks to tighten its grip on the crypto industry, new regulations could mean more user data collection. Just when Coinbase disclosed a meaningful data breach, the U.K. revealed plans for strict new rules on crypto transactions.
Beginning January 1, 2026, all crypto firms operating in the U.K. will need to gather detailed personal data for every transaction. This includes customer names, addresses, date of birth, adn tax identification numbers. Even transfers between wallets are subject to these rules.The move reflects the U.K.’s aim to increase transparency and accountability.
HM Revenue and Customs announced these changes on May 14. Firms that fail to comply face fines of up to £300 ($398) per user annually. These rules extend beyond international standards, ensuring the U.K. aligns with global initiatives like the European MiCA regulation.
The goal is to protect consumers and address tax evasion. Elliptic’s Mark Aruliah supports this shift towards transparency, despite the challenges it poses to smaller firms. This new clarity may help the industry grow and match traditional finance standards.
however, the Coinbase data breach raises serious concerns about data security. Attackers bribed overseas contractors, exposing user names, emails, phone numbers, and partial Social Security numbers. This incident underscores the risk of collecting sensitive data before ensuring robust security measures.
While Coinbase argues it detected the breach swiftly, signs of trouble were evident months earlier, as highlighted by blockchain investigator ZachXBT. The U.K.’s new rules will demand a level of duty that companies must be prepared to handle.
