From 1 January 2026, Crypto platforms who provide Cryptoasset services in the UK will be legally required to collect and report on detailed customer information under the new Crypto-Asset Reporting Framework (CARF).
This forms part of a broader global initiative, backed by the Organisation for Economic Co-Operation and Development (OECD), to clamp down on Crypto-related tax avoidance and improve transparency in digital asset markets.
From 1 January 2026, Crypto exchanges and service providers operating in the UK will need to gather and report to HMRC the following information for each user:
- Full name;
- Date of birth;
- Home address;
- Country of residence; and
- National Insurance number or Unique Taxpayer Reference (for UK residents).
They will also need to send transaction data including:
- Value of each transaction;
- Type of Cryptoasset;
- Number of units; and
- Type of transaction (e.g. buy, sell, exchange, transfer).
What will this mean for you?
This marks a significant shift in the visibility HMRC will have over your Crypto activity.
If the income and Capital Gains you declare on your Self-Assessment tax return doesn't match up with the amounts reported by these platforms, or if you fail to declare your Crypto trades, HMRC will have the information it needs to launch a tax investigation.
These changes also apply to companies, partnerships, trusts and charities.
Author
Jay Kerai | ACCA
Audit & Accounts Senior, Crypto Tax Specialist
How can we help?
Based in Cardiff, Hodge Bakshi is a leading firm of Chartered Accountants and Chartered Tax Advisers with over 40 years' experience serving businesses and individuals across South Wales and the UK.
Our Crypto tax advisory team have been personally involved since Bitcoin's inception and were one of the first UK Crypto accountants involved in the industry. We are also proud members of CryptoUK which is the UK's largest self-regulatory association representing the Cryptoasset sector.
To find out if you may need to seek advice, please complete the form below:
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