UK Expands Crypto Reporting Rules to Include Domestic Transactions
- Starting in 2026, UK crypto platforms must report all transactions from UK-resident users under the expanded Cryptoasset Reporting Framework (CARF).
- This change grants His Majesty’s Revenue and Customs (HMRC) automatic access to both domestic and cross-border crypto transaction data for the first time.
- The CARF framework, designed by the OECD, mandates due diligence and annual reporting of detailed transaction information by crypto asset service providers.
- The UK government aims to prevent crypto from becoming an “off-CRS” asset class, ensuring visibility similar to traditional financial accounts.
- A proposed “no gain, no loss” tax framework would defer capital gains liabilities for DeFi users until they sell their tokens.
The UK’s move to require domestic reporting aligns with a global trend of increased oversight in cryptocurrency taxation as governments seek clarity on digital asset activities. Other countries like South Korea and Spain are also tightening their tax regulations on cryptocurrencies.
With these new rules, HMRC will have enhanced capabilities to monitor compliance among UK crypto users starting in just a few years.(Source)
