UK Tightens Crypto Rules: What You Need to Know

The UK is stepping up its game on crypto taxes. Starting in 2026, crypto platforms will have to report all transactions made by UK users. This move is part of a bigger plan to make sure crypto isn't used to dodge taxes. The UK's tax authority, HMRC, will get automatic access to both local and international crypto data. This is a big deal because, until now, only cross-border crypto transactions were automatically reported. The rules come from the OECD, an international group that helps countries work together on economic issues. The new rules mean crypto companies will have to check users' identities and report detailed transaction info every year. Before this, only crypto transactions involving different countries were automatically reported. Now, even transactions within the UK will be tracked. Why is this happening? The UK wants to make sure crypto doesn't become a way to hide money from taxes. By reporting all transactions, they can keep an eye on things and make sure everyone pays their fair share. This also means crypto companies will have an easier time reporting everything, and tax authorities will have more complete data. The UK also proposed a new tax rule for DeFi users. This rule says that users won't have to pay capital gains taxes until they sell their tokens. This is good news for the crypto industry, as it makes things simpler and more predictable. But the UK isn't the only country making changes. South Korea is cracking down on crypto tax evasion. They plan to seize crypto held in cold wallets and even search homes for hardware wallets if they suspect tax evasion. In Spain, there's a proposal to raise the top tax rate on crypto gains to 47%. And in Switzerland, the start of automatic crypto information exchange has been postponed until 2027. Meanwhile, in the US, there's a new bill that would allow Americans to pay their taxes in Bitcoin. This bill, called the Bitcoin for America Act, would treat Bitcoin payments as neither a gain nor a loss for the taxpayer. This means no capital gains taxes on Bitcoin payments.