Crypto tax reporting rules taking effect in UK and 40+ countries
The UK and 47 other nations are implementing the OECD's CARF, requiring crypto providers to report detailed user transaction data to tax authorities.Summary
The UK, along with 47 other countries, is adopting the OECD’s Cryptoasset Reporting Framework (CARF) to enhance transparency and combat tax evasion in global crypto transactions. Under this framework, crypto-asset service providers, including exchanges and wallet providers, must collect detailed personal and business information, tax residency, and full transaction histories, including gains and losses, from their users. Individuals must provide details like name, date of birth, address, and tax ID, while entities must supply business details. This data must be reported to tax authorities, such as the UK's HMRC, starting May 31, 2027, covering all activity from 2026, and will be shared internationally. Penalties for non-compliance or failing to pay taxes can be severe, potentially reaching up to 100% of the tax due plus interest for UK users, with higher penalties for offshore cases.
(Source：Crypto Briefing)