UK Expands Crypto Reporting Rules as Global Tax Oversight Tightens
Beginning in 2026, the UK will require domestic crypto platforms to report all transactions from UK-resident users, expanding the Cryptoasset Reporting Framework (CARF) beyond its original cross-border scope. This change will provide HMRC with automatic access to both domestic and international crypto transaction data, strengthening tax compliance as CARF’s global data exchange begins in 2027. CARF, created by the OECD, requires crypto service providers to verify identities and report user activity annually. The UK’s decision to include domestic transactions aims to close gaps that could allow crypto assets to evade existing tax reporting standards applied to traditional finance. The move is intended to streamline compliance for crypto firms and improve data for tax authorities. Additionally, the UK has proposed a “no gain, no loss” regime deferring capital gains taxes on decentralized finance (DeFi) asset transfers until final sale. Other countries are also tightening crypto tax rules: South Korea will seize crypto assets in tax evasion cases; Spain proposes higher top rates on crypto gains; Switzerland postponed global crypto reporting to 2027; and a US bill proposes allowing federal taxes to be paid in Bitcoin.
