UK Crypto Exchanges to Report User Transactions to HMRC
Starting January 1, 2026, UK crypto exchanges must send detailed transaction data of resident users to HM Revenue & Customs (HMRC). This new rule aims to improve tax compliance among crypto investors in the UK.
New Crypto-Asset Reporting Framework (CARF)
The UK government introduced the Crypto-Asset Reporting Framework (CARF) to tighten oversight of crypto activities. From 2026, crypto platforms must collect and store complete transaction histories of their UK customers. This reduces the anonymity that some traders rely on.
CARF addresses gaps left by the Common Reporting Standard (CRS), which does not cover crypto transactions. The new framework gives HMRC reliable data to better detect tax evasion and ensure users follow tax rules.
Impact on Crypto Exchanges and Users
- Crypto exchanges will be called Reporting Cryptoasset Service Providers (RCASPs).
- Approximately 50 UK businesses will need minor updates for data collection and record-keeping.
- The data helps HMRC determine tax liabilities without waiting for individual tax filings.
- Exchanges that fail to report correctly could face penalties.
This rule is not aimed at individual users and should have a limited impact on the crypto industry. The UK joins other regions, like the US and EU, in strengthening crypto regulation and tax transparency.
Learn more about CARF on the official UK government website.
