The UK government has confirmed that starting 2026, crypto platforms operating domestically must report user transaction data — even for UK-resident users — under CARF. This move expands previous requirements, which mostly covered cross-border transactions, and gives the tax authority HM Revenue & Customs (HMRC) full visibility into crypto activity on home soil.
Effectively, this extension aims to prevent crypto assets from remaining a grey area in tax reporting. For individuals and service providers, it signals a shift: crypto transactions will now be treated similarly to traditional financial accounts when it comes to reporting and compliance.
What the Expanded CARF Rules Cover
From 1 January 2026, UK-based crypto-asset service providers (CASPs) — including exchanges, custodial wallet providers, and other regulated entities — must collect user identity data and full transaction details. That includes transfers, trades, conversions, token swaps, stablecoin transactions, and other wallet movements. Providers will submit annual reports to HMRC.
The first reports will cover activity from 2026 and must be submitted by 31 May 2027. At that point, HMRC will have both domestic and cross-border crypto transaction data, consistent with international standards set by CARF.
HMRC’s goal is to bring crypto under the same transparency umbrella as traditional financial assets — giving tax authorities the tools to detect underreporting or evasion, even when funds move solely within the UK.
This regulatory update represents a major shift in how crypto is treated in the UK. The timeline to 2026 gives both service providers and users time to prepare. For users — especially those trading, staking, swapping or holding significant crypto — the key takeaway is clear: expect full transaction reporting and compliance enforcement starting next year.
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