UK Aligns with OECD’s CARF, Tightens Crypto Reporting Rules

Starting in 2026, the United Kingdom will implement a new set of tax reporting rules targeting detailed data collection on crypto transactions. The regulation aligns with the Cryptoasset Reporting Framework (CARF), a standard issued by the OECD to enhance transparency in the digital asset space.

According to UK authorities, each crypto firm will be required to collect and submit to HMRC user data such as full name, address, tax identification number, the cryptocurrency used, and the amount involved in each transaction. The rule applies to all clients, including companies, trusts, and charitable organizations.

This measure reflects the growing concern of tax authorities in preventing tax evasion through cryptocurrencies and integrating the crypto market into the traditional fiscal system. The impact on the industry will be significant: firms will need to invest in compliant reporting systems and adapt their internal processes.

For users, the regulation brings a new level of scrutiny and may influence platform preferences. While authorities promise further clarifications, companies are encouraged to start preparations early to avoid fines and operational disruptions.