From 2026 in the UK and EU, crypto is going to as centralised and regulated, if not more than traditional banks.

Looking at the new regulations due to come into effect in January 2026 if you value your privacy you’d want to be removing your coins from exchanges and putting them in cold storage.

tldr: Under DAC 8 (and CARF aligned frameworks) EU jurisdictions will require crypto-asset service providers to disclose user data along with their transaction data to tax authorities.

The EU approach means these obligations will be not just domestic but cross-border (service providers in one jurisdiction may have to report for users resident elsewhere).

The rules specifically state “any user data” and ”any transaction data” to ”competent authorities”. Basically, the difference from then and now is if the “competent authorities” want your information and data they need a court order or warrant but from 2026 on they need absolutely nothing. In fact they don’t even have to request it. The exchange will automatically provide it to them.

The pros:

-It should reduce the amount of scams / money laundering / criminality associated with crypto carried out by criminals in the EU. “Following the money” will be a lot easier for the authorities in an investigation. Although Id imagine tax is their main motive with these new rules.

The cons:

Your privacy is totally wiped. Once your coins are bought / sold / moved, the government will know all about it. Yes there is always P2P but if it’s facilitated through any 3rd party business which most are, it’s no longer anonymous.

I don’t do anything illegal and pay my taxes but i do value my privacy. I don’t like the idea of people knowing exactly what and when I buy and sell.