{
  "url": "https://openlegislation.uk/reporting-cryptoasset-service-providers-due-diligence-and-reporting-requirements-regulations-2025/note",
  "json_url": "https://openlegislation.uk/reporting-cryptoasset-service-providers-due-diligence-and-reporting-requirements-regulations-2025/note.json",
  "legislation": "uksi/2025/744",
  "legislation_title": "The Reporting Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations 2025",
  "legislation_url": "https://openlegislation.uk/reporting-cryptoasset-service-providers-due-diligence-and-reporting-requirements-regulations-2025",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations make provision implementing the rules and commentary set out in the OECD Crypto-Asset Reporting Framework first published in 2022 and subsequently amended in June 2023 and October 2023 (‘the rules’). They impose obligations on certain individuals and entities that make available a trading platform or provide a service effectuating exchanges between cryptoassets and fiat currencies or between one or more forms of certain cryptoassets, where those individuals or entities have a relevant nexus to the UK (‘UK reporting cryptoasset service providers’). UK reporting cryptoasset service providers are required to carry out due diligence on users of their services, to report information about those users to HMRC and to notify those users that the information will be reported to HMRC.\nPart 1 contains introductory provisions. Regulation 3(2) sets out the procedure and time limits applicable where a reporting cryptoasset service provider gives notification under section I(H) of the rules confirming its completion of the reporting and due diligence requirements in sections II and III of the rules under the rules of a partner jurisdiction as envisaged by that section.\nPart 2 imposes due diligence, record-keeping and reporting obligations on UK reporting cryptoasset service providers. Regulation 4 provides that UK reporting cryptoasset service providers must apply, and establish and maintain arrangements designed to apply, the due diligence procedures set out in section III of the rules, and must keep records of these procedures, and the information obtained under them, for five years after the end of the year to which they relate. Regulation 5 requires cryptoasset users and controlling persons of entity cryptoasset users to provide a self-certification in accordance with the requirements of section III of the rules when requested to do so by a UK reporting cryptoasset service provider. Regulation 6 provides that a UK reporting cryptoasset service provider must make a report to HMRC containing specified information contained in section II of the rules in respect of each calendar year. Regulation 7 provides that reports must be made using an electronic reporting system and provides rebuttable presumptions in respect of those reports. Regulation 8 provides that, where a report will include information relating to a person, the UK reporting cryptoasset service provider must notify the person and make them aware that it may be shared with other jurisdictions. Regulation 9 allows an officer of Revenue and Customs to require information and documents from a reporting cryptoasset service provider, if the officer reasonably suspects that they are subject to these regulations. Regulation 10 requires a UK reporting cryptoasset service provider, or a service provider who would be one if they were not already providing sufficient information in another jurisdiction, to register with HMRC.\nPart 3 provides penalties for failures to comply with the obligations set out above. Regulation 19 identifies where liability to a penalty falls in circumstances where the reporting cryptoasset service provider or self-certification provider liable to the penalty is a partnership or trust. Regulation 20 provides that liability to a penalty does not arise where a person has a reasonable excuse for a failure to comply with the regulations. Regulation 21 provides that a person cannot be liable to a penalty under any two or more of regulation 11 (failure to apply due diligence procedures), 12 (failure to comply with record-keeping requirements), and 15 (inaccurate or incomplete reports), in respect of the same act or omission. Regulation 22 provides for assessment of penalties by HMRC. Regulation 23(1) and (2) provides for time limits for the assessment of penalties and regulation 23(3) and (4) provides for when penalties are due and how they are treated. Regulations 24 and 25 provide for appeals against assessments to penalties.\nPart 4 contains supplementary provision. Regulation 26 is an anti-avoidance provision.\nA Tax Information and Impact Note (TIIN) covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2025/744/note",
    "retrieved_at": "2026-10-28T21:14:24.656229+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}