UK to Expand Crypto Reporting to Domestic Users from 2026
The United Kingdom will require domestic crypto platforms to report all transactions by UK-resident users starting in 2026, extending the scope of the Cryptoasset Reporting Framework (CARF) as global tax oversight of digital assets increases.
The change will give His Majesty’s Revenue and Customs (HMRC) automatic access to both domestic and cross-border crypto data for the first time, tightening compliance ahead of CARF’s first global information exchange in 2027.
CARF, developed by the Organisation for Economic Co-operation and Development (OECD), establishes automatic cross-border sharing of crypto transaction data among tax authorities. The rules require crypto asset service providers to conduct due diligence, verify customer identities, and report detailed transaction information annually.
Because the framework primarily targets cross-border activity, crypto transactions conducted entirely within the United Kingdom would otherwise fall outside automatic reporting, according to a policy paper published by HMRC on Wednesday. By broadening the framework to include domestic activity, the UK aims to prevent crypto from becoming an “off-CRS” asset class that sits outside the visibility applied to traditional financial accounts under the Common Reporting Standard. Officials said the unified approach is intended to streamline reporting for crypto firms and provide a more comprehensive dataset for identifying noncompliance and assessing tax obligations.
Also on Wednesday, the government proposed a “no gain, no loss” tax approach that would defer capital gains liabilities for decentralized finance (DeFi) users until they dispose of the underlying tokens, a change broadly welcomed by the local industry.
Governments expand crypto tax oversight globally
In South Korea, the National Tax Service announced in October that it will seize cryptocurrency held in cold wallets and conduct home searches for hardware devices if it suspects taxpayers are concealing digital assets to evade obligations.
In Spain, the Sumar parliamentary group recently proposed increasing the top tax rate on crypto gains to 47%, according to local reports. The amendments would classify crypto profits within the general income bracket and establish a 30% flat rate for corporate holders.
Source: Cris Carrascoca
On Thursday, Switzerland said it had postponed the start of automatic crypto information exchange with foreign tax authorities until 2027, as it determines which partner jurisdictions will receive data. CARF rules will still take effect in Swiss law on Jan. 1, but the rollout has been delayed, with transitional measures planned to ease compliance for domestic firms.
In the United States, Representative Warren Davidson introduced a bill in November that would allow federal tax payments in Bitcoin, with contributions directed to a strategic national BTC reserve. The proposal, known as the Bitcoin for America Act, would exempt these payments from capital gains taxes by treating the transferred Bitcoin as neither a gain nor a loss for the taxpayer.
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