Bitcoin Tax Rules Launch in 40+ Countries

New Crypto Tax Reporting Rules Adopted by UK and 47 Countries

• The UK and 47 other countries have adopted new crypto tax reporting rules under the OECD’s Cryptoasset Reporting Framework (CARF).
• Exchanges and wallet providers must collect detailed data on users and transactions to prevent tax evasion.
• Entities involved in buying, selling, or transferring crypto assets must provide personal or business information to service providers.
• Crypto-asset service providers are required to report identity details, tax residency, and transaction histories to HMRC by May 31, 2027.
• Penalties for incorrect or missing user information can reach up to £300, with additional penalties for unpaid taxes reaching up to 100% of the tax due plus interest.

The adoption of the OECD’s CARF by the UK and other countries aims to close loopholes in crypto asset taxation. Service providers must report detailed transaction data to authorities by May 2027. Penalties apply for non-compliance.