Overview
- From January 1, 2026, exchanges, custodial wallets, and other providers must collect verified identity details, tax residency, and full transaction histories for UK users across activities such as trading, staking, swaps, mining, and gifting.
- Reporting Crypto-Asset Service Providers must file 2026 data to HMRC by May 31, 2027, with participating jurisdictions starting automatic cross-border information sharing in 2027.
- A total of 48 countries have started applying CARF, 75 have pledged to join, and the United States plans to adopt the rules in 2028 and begin exchanges in 2029.
- UK taxpayers face fines of up to £300 for incorrect or missing personal details and penalties up to 100% of unpaid tax plus interest, with higher penalties in offshore cases.
- Platforms are expected to implement bank-grade compliance systems, and HMRC has intensified oversight, issuing 65,000 letters in 2024–25 to suspected under-reporters.