The United Kingdom will mandate that domestic cryptocurrency platforms report all transactions for UK-resident users starting in 2026, enhancing the existing Cryptoasset Reporting Framework (CARF).

This decision enables His Majesty’s Revenue and Customs (HMRC) to access domestic and international crypto transaction data for the first time, tightening tax oversight just ahead of CARF’s inaugural global data exchange in 2027.

The CARF, created by the Organisation for Economic Co-operation and Development (OECD), facilitates the automatic exchange of crypto transaction data between tax authorities. It obliges crypto asset service providers to verify user identities and report transaction details annually.

Currently, the framework is tailored for international transactions, leaving domestic crypto activity outside its automated reporting system. However, by including domestic users in the reporting requirements, the UK government aims to ensure that cryptocurrencies are subjected to visibility similar to traditional financial accounts under the Common Reporting Standard.

Officials assert that this unified approach will streamline reporting for cryptocurrency companies and help tax authorities compile a more comprehensive database, thereby identifying noncompliance and executing tax obligations more effectively.

Additionally, a new “no gain, no loss” tax proposal was introduced this week, permitting DeFi users to defer capital gains taxes until they sell tokens—an adjustment welcomed by the local crypto community.

Governments Enhance Crypto Tax Monitoring Globally

As cryptocurrencies establish a stronger presence in finance, nations are revising their tax regulations for clearer digital asset governance.

In South Korea, for example, authorities have declared their intent to seize cryptocurrencies stored in cold wallets if they suspect tax evasion.

In Spain, the Sumar parliamentary group is pushing to escalate the maximum tax rate on crypto earnings to 47%.

Meanwhile, Switzerland has deferred its automated crypto information exchange with foreign tax authorities until 2027 while evaluating participating countries. While CARF regulations take effect in Swiss law on January 1, their implementation has been postponed to ease compliance for local crypto businesses.

In the U.S., legislation introduced by Representative Warren Davidson would empower Americans to pay federal taxes in Bitcoin, with provisions to characterize such transfers as neither gains nor losses for tax calculations.