UK to Enforce CARF Crypto Tax Reporting Rules Starting 2026

The UK government is aligning with global tax transparency efforts by implementing the Crypto-Asset Reporting Framework (CARF) in 2026. Developed by the OECD, CARF mandates crypto service providers to collect and report user transaction data, targeting tax evasion through digital assets.

Over 40 jurisdictions, including EU members, have adopted similar measures. The rules will apply to both centralized and decentralized platforms operating in the UK, regardless of physical presence. Compliance deadlines begin in 2026 for all Crypto Asset Service Providers (CASPs).

This regulatory shift underscores growing institutional recognition of cryptocurrency markets while introducing new operational complexities for exchanges and wallet providers. Market participants should prepare for enhanced reporting requirements that mirror traditional financial surveillance frameworks.