The United Kingdom will require domestic cryptocurrency platforms to report all transactions from UK-resident users starting in 2026, significantly broadening the scope of the Cryptoasset Reporting Framework (CARF). The move will give HM Revenue & Customs (HMRC) automatic access to both domestic and cross-border crypto data for the first time, strengthening tax oversight ahead of CARF’s first global information exchange in 2027.

What CARF Means for Crypto Reporting

CARF, developed by the Organisation for Economic Co-operation and Development (OECD), sets standards for the automatic cross-border exchange of crypto transaction data between tax authorities worldwide. It requires crypto asset service providers to conduct due diligence, verify user identities, and submit detailed transaction reports annually.

Previously, CARF focused primarily on cross-border activity, meaning transactions occurring entirely within the UK were not automatically reported. Expanding the framework to domestic users ensures crypto does not become an “off-CRS” asset class, escaping the transparency applied to traditional financial accounts under the Common Reporting Standard.

UK officials say the unified approach will simplify compliance for crypto companies while giving tax authorities a complete dataset to detect noncompliance and accurately assess taxpayer obligations.

Alongside this change, the UK also proposed a “no gain, no loss” tax framework for decentralized finance (DeFi) users, deferring capital gains liabilities until the underlying tokens are sold—a shift welcomed by the local industry.

Global Trend: Governments Tighten Crypto Tax Oversight

The UK is not alone in increasing scrutiny over digital assets.

• In South Korea, the National Tax Service announced it will seize crypto held in cold wallets and search homes for hardware devices if it suspects tax evasion.
• In Spain, the Sumar parliamentary group proposed raising the top tax rate on crypto gains to 47%, moving profits into the general income bracket, with a 30% flat rate for corporate holders.
• Switzerland delayed the start of automatic crypto information exchange with foreign tax authorities until 2027, despite CARF entering Swiss law on January 1, 2026. Transitional measures will ease compliance for domestic firms.
• In the United States, Representative Warren Davidson introduced the Bitcoin for America Act, allowing federal taxes to be paid in Bitcoin. The proposal treats such payments as neither a gain nor a loss, exempting them from capital gains tax and routing contributions into a strategic national BTC reserve.

As cryptocurrencies become further embedded in mainstream finance, governments worldwide are updating tax frameworks to enhance transparency, prevent evasion, and ensure consistent reporting across borders.