UK to Enforce CARF Rules in 2026, Reshaping Crypto Tax Reporting
From 2026, UK crypto firms must report user data under OECD’s CARF rules, raising compliance pressure on both centralized and decentralized platforms.
Crypto Laddin
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The UK government has announced it will enforce the OECD’s Crypto-Asset Reporting Framework (CARF) starting in 2026 — a move aimed at enhancing tax transparency and aligning with global reporting standards.
Under the new rules, crypto asset service providers (CASPs), whether based in the UK or serving UK residents, must collect and report detailed user and transaction data. The first reporting deadline is May 31, 2027.
The CARF aligns the UK with more than 40 countries and will work alongside the EU’s DAC8 regulations. It requires crypto firms to collect data on UK tax residents and users from CARF-participating countries.
This includes:
- User identity verification
- Transaction volumes and counterparties
- Coverage of exchanges, custodial wallets, and transfer services
Non-compliance could lead to hefty fines — up to €300 per affected user.
However, the regulations are posing serious challenges for decentralized exchanges (DEXs) and non-custodial platforms that prioritize privacy. Some firms are reportedly considering leaving the UK due to the cost and complexity of implementation.
As 2026 approaches, crypto businesses must begin preparing their infrastructure for compliance or face penalties that could threaten their operations.
