The world of crypto is maturing quickly, and governments are working to keep pace. One of the biggest developments for UK investors is the introduction of the Crypto-Asset Reporting Framework, known as CARF. This new global tax reporting standard will reshape how crypto platforms collect and share information with tax authorities.

From 1 January 2026, UK crypto service providers, including exchanges and wallet platforms, will begin collecting more detailed data on their users and transactions. Each year, this information will be sent to HM Revenue & Customs (HMRC), helping tax authorities ensure that individuals properly report their crypto income and gains.

For investors, this represents an important shift toward greater transparency and accountability. It is not about new taxes but about better visibility.

CARF stands for the Crypto-Asset Reporting Framework. It was created by the Organisation for Economic Co-operation and Development (OECD) as part of a global effort to bring digital assets into existing tax reporting systems.

The OECD already manages the Common Reporting Standard (CRS), which applies to bank accounts and financial institutions. CARF extends that approach to cryptocurrencies and other digital assets. It provides tax authorities with a consistent method for collecting information on who owns and trades cryptocurrency, the volume of transactions, and the location of those users for tax purposes.

More than 50 countries have already committed to adopting CARF. The UK is among the first major economies to move forward with implementation.

In the UK, CARF will take effect from 1 January 2026. From that date, platforms like coinpass will begin collecting the required information from new and existing users.

HMRC will receive the first set of reports, covering the 2026 calendar year, in 2027. If you are a coinpass customer, you may have to confirm or update your personal details ahead of this change so that the information is complete and accurate when the reporting period begins.

Under CARF, crypto platforms will have to collect and report specific information, including:

• Full legal name, date of birth and address.
  
• Country of tax residence and tax identification number (TIN).
  
• Report the details of each transaction, including the asset traded, how much, when, and at what value in fiat currency.

For users who are tax-resident outside the UK, HMRC will share the information with the relevant overseas tax authority through automatic exchange agreements. This global coordination aims to make cross-border crypto activity more transparent and consistent.

For everyday crypto users in the UK, CARF will bring a few noticeable changes.

1. More data sharing between platforms and HMRC
   Your crypto transactions will be more visible to HMRC, similar to how banks already report savings and investments under existing frameworks.
2. Clearer tax responsibilities
   The responsibility to report and pay any tax on crypto gains or income remains yours. However, tax authorities will now have more structured data to confirm your reported figures.
3. Requests for updated personal details
   You may receive notifications from your platform to verify or update your identity and tax details. It is important to complete these requests promptly to avoid interruptions to your account.

CARF aims to ensure fairness and consistency for all users, not for increasing taxes or penalising honest investors.

The introduction of CARF marks a significant milestone in global crypto regulation. It signals that digital assets are being integrated into the global financial system rather than sitting outside of it.

For the industry, this means higher standards of compliance and better alignment with traditional financial practices. For users, it provides more confidence that the platforms they use operate transparently and responsibly.

CARF will also make it harder for bad actors to conceal assets or avoid paying tax, helping to build long-term trust in the crypto market.

At coinpass, we are already preparing for the arrival of CARF. Our team is reviewing onboarding processes, updating systems, and ensuring that we can securely capture and report all the required information once the rules take effect.

We are also closely monitoring updates from HMRC and the OECD to ensure our reporting processes remain accurate and compliant.

Our goal is to make the transition as smooth as possible for our users. You can expect clear communication, guidance, and transparency from us at every stage of the process.

If you hold or trade crypto, there are a few simple steps you can take to get ready for CARF:

• Verify that your name, address, and date of birth are accurate on your crypto accounts.
  
• Confirm your country of tax residence and tax identification number (TIN).
  
• Keep good records of your crypto transactions, including trades, transfers, and income,
  
• Review your tax reporting to ensure you are declaring gains accurately.
  
• If you are uncertain about your tax position, consider seeking advice from a qualified accountant.

Being prepared will help ensure you remain fully compliant when CARF comes into effect.

CARF marks a new chapter for the global crypto market by providing structure, accountability and trust to an industry often criticised for its lack of transparency.

For UK crypto users, it is not something to worry about. The rules are about data sharing, not about changing how your investments are taxed. The best approach is simply to stay informed and keep your account details up to date.

coinpass will continue to monitor developments closely and share updates as they become available. Our priority remains helping you trade crypto in a secure and compliant way, while staying ahead of upcoming regulations.

At coinpass, we provide a secure and efficient platform designed to meet the needs of professional and corporate investors. Whether you’re looking to diversify your treasury, explore new markets, or integrate digital assets into your financial strategy, our platform offers the necessary tools and expertise.

Book a call with coinpass today.

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