New measures will give HMRC full access to UK-based crypto activity as global authorities strengthen oversight of digital assets.
UK Crypto Reporting Requirements Tighten Under Expanded CARF Rules
The United Kingdom is set to introduce stricter reporting obligations for digital asset platforms, requiring them to submit detailed information on all transactions involving UK-resident users beginning in 2026. The move broadens the scope of the Cryptoasset Reporting Framework (CARF), ensuring that both domestic and cross-border crypto activity falls under automatic reporting for the first time.
This expansion gives HMRC direct visibility into crypto trades, transfers, and holdings within the country — a significant step as the first global data exchange under CARF begins in 2027.
UK Aims to Prevent Crypto From Becoming an Off-Grid Asset Class
CARF, developed by the OECD, was designed to allow global tax authorities to automatically share cross-border crypto data. However, purely domestic transactions previously fell outside its reporting channels. By closing this gap, the UK intends to prevent crypto from becoming an “off-CRS” asset class, one that avoids the scrutiny applied to traditional financial accounts under the Common Reporting Standard.
Officials say the unified reporting structure will streamline compliance for crypto companies while giving HMRC a more complete dataset to detect underreporting and assess tax liabilities more accurately.
The government also introduced a “no gain, no loss” tax provision for DeFi users, allowing investors to defer capital gains until they sell the underlying tokens — a change welcomed by local industry participants.
Global Authorities Increase Digital Asset Oversight
The UK’s move reflects a broader international shift. Nations including South Korea, Spain, Switzerland, and the United States are updating tax frameworks to address the rapid expansion of digital assets. South Korea has begun seizing crypto held in cold wallets during tax investigations, while Spain has proposed lifting the top tax rate on crypto gains to 47%.
Switzerland has postponed automatic crypto data sharing until 2027 but will implement CARF rules into national law starting January. In the United States, a new proposal would allow federal tax payments in Bitcoin, with contributions routed into a strategic national reserve.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.