From Jan. 1, 2026, 48 countries including the United Kingdom have formally implemented a new crypto tax regulatory system, the Crypto-Asset Reporting Framework (CARF).
CARF is a global tax information standard developed under the leadership of the Organisation for Economic Co-operation and Development (OECD). It is an international cooperation framework designed to prevent tax evasion using cryptocurrencies and digital assets.
Under CARF, major crypto exchanges in the UK must collect key information such as all transaction records of UK users, tax residence and wallet addresses and report it to the UK tax authority HM Revenue and Customs (HMRC). Reporting entities may include brokers and custody firms, in addition to exchanges.
The UK is among the 48 countries that first adopted the CARF framework. From 2027, it will automatically share the collected information with European Union member states, Brazil, the Cayman Islands and South Africa, among others. A total of 75 countries have so far declared participation in CARF, and the United States plans to implement it from 2028 and join international information sharing from 2029.
Chi-gyu Hwang
delight@d-today.co.kr