Crypto tax reporting rules under the OECD’s Crypto-Asset Reporting Framework will begin taking effect from Jan. 1, 2026.
Data collection will start across 48 jurisdictions, including the United Kingdom and the European Union.
The framework introduces standardised reporting obligations for crypto exchanges and platforms.
In-scope providers will be required to collect enhanced customer information.
Platforms must verify user tax residency as part of onboarding and ongoing reviews.
Annual reporting of crypto balances and transaction activity will become mandatory.
Reported data will be shared between tax authorities through existing information-exchange agreements.
Regulators say the framework aims to close long-standing gaps in cross-border crypto tax reporting
Lucy Frew said CARF is “a game-changer” that is “set to reshape compliance for digital asset businesses and customers.”
She said users should expect tougher onboarding checks and more frequent account reviews.
Frew warned that offshore platforms will no longer remain invisible to tax authorities.
Companies that delay may face regulatory and reputational consequences.
Lucy Frew said.
Exchanges will need to integrate CARF into existing KYC and AML systems.
Many platforms will need to redesign onboarding flows to capture tax self-certification data.
Firms are also expected to upgrade internal reporting and governance frameworks.
Compliance teams will need closer coordination with engineering and customer support teams.
The changes are particularly complex for exchanges operating across multiple jurisdictions.
UK-licensed platforms are expected to be among the first impacted.
CoinJar CEO Asher Tan said users will be asked to provide additional tax residency details.
He said the challenge is meeting regulatory standards without harming user experience.
That balance can become a competitive advantage.
Asher Tan said.
Industry leaders say compliance will increasingly differentiate trusted platforms.
Retail users are expected to face higher audit risk rather than new taxes.
CARF does not introduce new tax liabilities but strengthens enforcement of existing rules.
UK tax authority HMRC will receive machine-readable data directly from exchanges.
This will make inconsistencies between tax filings and exchange data easier to detect.
Accountants say common issues include unreported offshore activity and small disposals.
Decentralised finance and NFT transactions are also frequently misreported.
Anyone with unresolved issues should be addressing them now.
A UK crypto tax adviser said.
Authorities are expected to review historic positions once reporting begins.
Voluntary disclosure options remain available ahead of implementation.