Overview
- Reporting crypto-asset service providers must verify users’ identities and tax residency and record detailed transaction histories covering cryptocurrencies, stablecoins, NFTs and certain intermediary-mediated DeFi activity.
- UK platforms are required to compile full 2026 data now, with first submissions to HMRC due by May 31, 2027, ahead of international information sharing beginning in 2027.
- UK taxpayers who realized crypto gains in the 2024–25 tax year are being directed to use a new Self Assessment crypto section by January 31, with penalties for errors or unpaid tax.
- A second wave of roughly 27 countries, including Australia, Canada, Switzerland and Mexico, will start domestic collection in 2027, while the United States is expected to implement CARF in 2028 with exchanges beginning in 2029.
- Exchanges are investing in compliance infrastructure as smaller providers face operational strain and privacy concerns intensify across jurisdictions aligning domestic laws with the framework.