UK tightens crypto tax reporting under OECD CARF, platforms must collect and report detailed transaction data

The UK has enacted new crypto tax reporting rules aligned with the OECD’s Crypto‑Asset Reporting Framework (CARF). Under the rules, UK-based and in-scope crypto platforms — including centralized exchanges, custodians and certain service providers where feasible — must collect standardized, detailed customer transaction data and retain full transactional records. Reporting covers cross-border transactions, fiat–crypto trades, transfers between crypto types, and high-value retail payments, with thresholds and standardized data fields set to enable automatic exchange of information with other jurisdictions. Platforms must begin data collection from the implementation date and submit the first report to HMRC in the submission window covering calendar year 2026 (first report due by May 31, 2027). HMRC has identified roughly 50 providers in scope and estimates substantial additional tax yield. Non-compliance carries fines (e.g., per-customer penalties) and further sanctions for failing to collect or file required data. Traders should note likely impacts: reduced privacy for users, increased on‑chain/off‑chain scrutiny, higher compliance costs for platforms, potential short‑term liquidity or service disruptions as platforms implement controls, and possible shifts in market sentiment for major assets due to enhanced reporting and enforcement.