The UK, alongside over 40 other jurisdictions, is implementing new crypto tax reporting obligations under the OECD Crypto Asset Reporting Framework (CARF). From 1 January 2026, crypto-asset service providers (CASPs) will be required to begin collecting reportable data, with information exchanges with HM Revenue & Customs (HMRC) taking place from the following reporting cycles. CARF is a global initiative designed to enhance tax compliance and transparency in the crypto sector by enabling the automatic exchange of information between tax authorities, helping to combat tax evasion involving cryptocurrencies and digital assets. 

Under CARF, CASPs must collect and maintain detailed information on UK users, including transaction activity during the relevant reporting period, wallet interactions, and tax-related information. This also includes personal data such as full name, date of birth, tax residence, and tax identification details (such as a National Insurance number, where applicable). This information will be reported to HMRC in accordance with CARF reporting requirements. 

How many people will this impact? 

The UK is estimated to be home to 5–6 million crypto users, representing approximately 8% of the population. For many retail users, this marks the first time crypto activity will be subject to reporting standards approaching those applied to traditional financial institutions, significantly increasing transparency and regulatory oversight. While some users remain concerned about privacy implications, this development represents an important step in the UK formally recognising crypto assets as a legitimate asset class within the financial system. 

Crypto gains will continue to be subject to Capital Gains Tax, with applicable rates currently ranging from 10% to 20% for basic-rate taxpayers and 18% to 24% for higher- and additional-rate taxpayers, depending on individual circumstances and the nature of the gain. 

Alongside CARF implementation, the UK continues to develop its broader crypto regulatory framework. The Financial Conduct Authority (FCA) is currently seeking feedback on further proposals as part of the next phase of shaping the UK’s crypto asset regime.

More information can be found here: 

FCA seeks feedback on proposals for UK crypto rules | FCA