UK Begins Sweeping Crypto Tax Data Collection Under Global Rules Push

TLDR

• From January 1, UK crypto exchanges must report full user data to HMRC
• 48 countries have adopted CARF rules; 75 committed, including the US
• HMRC will begin automatic cross-border data sharing in 2027
• Crypto gains over £3,000 may trigger tax liability under current UK rules

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The UK has started enforcing new international crypto tax reporting rules from January 1st, 2026. Under the framework, major crypto exchanges must begin collecting and reporting detailed transaction data to HM Revenue & Customs (HMRC). The move marks a new step in global tax cooperation, targeting transparency across digital assets.

This is part of the OECD’s Cryptoasset Reporting Framework (CARF), a global agreement to standardise the collection and exchange of crypto-related tax information. The UK is among the first 48 countries to begin applying the new rules.

HMRC to Receive Comprehensive User Transaction Data

All crypto platforms serving UK-based users must now collect and report personal and transaction data. Required details include names, addresses, dates of birth, National Insurance numbers, tax residency, asset types, transaction dates, values, and purposes. This covers all activities such as trading, staking, swapping, mining, or gifting.

From January 1st, 2026, Reporting Crypto-Asset Service Providers (RCASPs) will begin gathering data. They must submit full-year reports for 2026 to HMRC by May 31, 2027. The process applies to exchanges, custodial wallets, and any platform handling user crypto activity.

Dawn Register, tax dispute partner at BDO, said HMRC is increasing efforts to tackle underreporting. She noted that the richer data sets enabled by CARF allow the authority to better target suspected non-compliance.

Automatic Cross-Border Data Sharing From 2027

The UK is preparing to automatically share crypto tax data with other CARF-aligned countries. This will begin in 2027 and include EU member states and countries such as Brazil, South Africa, the Cayman Islands, and the Channel Islands. In total, 75 countries have committed to join the CARF system. The United States will adopt the rules in 2028 and begin exchanging data in 2029.

Participating jurisdictions will share data to help identify undeclared crypto profits across borders. Andrew Park, tax specialist at Price Bailey, said the privacy once associated with crypto transactions is now ending. He warned investors in member countries that their transaction data will be available to tax authorities globally.

UK Crypto Users Face Wider Tax Enforcement

The new framework does not introduce additional taxes, but it increases scrutiny. HMRC can now compare platform-submitted data with individuals’ tax returns. Users with gains over £3,000 may face Capital Gains Tax of 10% to 20%, or Income Tax if trading appears frequent or business-like.

Tax liabilities may also apply when crypto is used to buy items, swapped for other tokens, or given as gifts. The only exemption is for transfers between spouses or civil partners. All transactions are assessed separately for tax purposes.

During the 2024–25 tax year, HMRC sent 65,000 letters to individuals suspected of failing to report crypto gains, up from 27,700 the year before. This reflects increased enforcement and monitoring capacity under CARF.

Exchanges Must Meet Strict Compliance Requirements

Crypto platforms are expected to invest in secure systems to store and report user data. The infrastructure must allow for accurate recordkeeping and timely submission of required information to HMRC.

The rules require a professional level of compliance, similar to that applied to traditional financial institutions. Authorities say this move brings crypto firmly under the umbrella of formal tax systems and aligns it with broader financial reporting.

Crypto ownership in the UK is estimated at 6–7 million people, or around 10–12% of adults. Many of them are now subject to tax reporting and compliance requirements similar to those applied to bank accounts and traditional investments. The Financial Times reported that this shift represents a wider trend toward transparency in digital assets. The UK’s early enforcement puts it at the front of global crypto tax regulation.

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