As part of the new Cryptoasset Reporting Framework (CARF), UK-based holders of cryptoassets will have to provide personal details to crypto service providers or face penalties from HMRC of up to £300.
CARF is a new set of rules introduced by the global policy forum, Organisation for Economic Co-operation and Development (OECD). The Framework provides guidance on how to report cryptocurrency transactions, as well as how to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. It aims to achieve crypto-asset transparency through annual, automatic exchange of information related to crypto-asset transactions among participating jurisdictions whose tax residents engage in such activity.
Crypto-assets are defined as any digital representation of value that relies on a cryptographically secured distributed ledger (or a similar technology) to validate and secure transactions. This includes stable coins, derivatives issued in the form of a crypto-asset and certain non-fungible tokens (NFTs).
The Framework will be introduced in the UK on 1 January 2026 and will require crypto platforms to share detailed information with tax authorities of clients’ crypto transactions. In addition, HMRC is already requiring full disclosure on self-assessment forms for the 2024/25 tax year, so clients who own cryptocurrency such as Bitcoin, Ethereum or Dogecoin, will have to include any crypto gains or income in their tax returns.
