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The United Kingdom will require domestic crypto platforms to report all transactions from UK-resident users starting in 2026, expanding the scope of the Cryptoasset Reporting Framework (CARF).<\/p>\n
The change will give His Majesty\u2019s Revenue and Customs (HMRC) \u2014 the UK\u2019s tax authority \u2014 automatic access to both domestic and cross-border crypto data for the first time, tightening tax compliance ahead of CARF\u2019s first global information exchange in 2027.<\/p>\n
CARF<\/a>, designed by the Organisation for Economic Co-operation and Development (OECD), is a framework for the automatic cross-border exchange of crypto transaction data<\/a> between tax authorities worldwide. Its rules require crypto asset service providers to perform due diligence, verify user identities, and report detailed transaction information on an annual basis.<\/p>\n The framework primarily focuses on cross-border activity, meaning that crypto transactions occurring entirely within the United Kingdom would fall outside automatic reporting channels, according to a policy paper<\/a> shared by HMRC on Wednesday.<\/p>\n By expanding the framework to cover domestic users, the government aims to prevent crypto from becoming an \u201coff-CRS\u201d asset class, one that escapes the visibility applied to traditional financial accounts under the Common Reporting Standard.\u00a0<\/p>\n