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Starting January 1, 2026, the UK will implement the OECD’s Cryptoasset Reporting Framework (CARF), a major shift in how crypto activity is tracked for tax purposes. This policy will require service providers to collect and report user data to HM Revenue & Customs (HMRC), making it easier for tax authorities to link crypto transactions to individuals.
The new rules aim to close long-standing reporting gaps in the crypto space. Your activity will soon be more visible to the government. That includes people using wallet apps, NFT marketplaces, and even online services that manage crypto portfolios.
What Is CARF and Why It Matters
The Cryptoasset Reporting Framework (CARF) was developed by the OECD to help governments access the kind of data that’s already standard in traditional banking. In the UK, HMRC will start using this framework to receive reports from crypto platforms about user identities and activity, including when, how, and what users are trading or holding.
The change reflects a growing push to treat crypto assets the same way as other taxable financial activities. Until now, it’s been possible to buy and sell digital assets without much oversight. Starting in 2026, that’s no longer the case.
If you’re using crypto platforms to buy, sell, trade, or hold tokens including Bitcoin, NFTs, or stablecoins, you’ll be affected. The regulation doesn’t just apply to investors. Anyone using a crypto wallet, trading on an exchange, or transacting on NFT marketplaces will be part of the reporting pool.
According to official guidance from HMRC published on May 14, 2025, service providers will be required to collect identifying details from users and report them. This information allows the government to match transactions with tax records, helping them determine if tax is owed.
How This Affects Everyday Users and Investors
For most users, the biggest change will be the increased visibility of their crypto activity to HMRC. If you’ve previously viewed crypto as a low-regulation space, that perception may need to shift. Once this rule is in place, nearly all crypto interactions on compliant UK platforms will be linked to your tax identity.
What this means:
- HMRC will more easily identify tax obligations from buying, selling, or exchanging crypto
- You may need to revisit previous trades or income sources to ensure they were reported properly
- Holding or using crypto across multiple platforms could require additional tracking tools
- Any gains from receiving crypto as payment or through mining will fall under income tax rules, including National Insurance contributions
There’s also another group to consider: users interacting with crypto-based services like online games or entertainment platforms. While not all UK-based services offering online slots have integrated CARF reporting yet, crypto activity through these services could eventually face closer scrutiny.
Winnings earned through crypto platforms might fall under the same tax obligations, depending on how they’re categorized and whether they’re connected to your broader crypto wallet. Users should stay informed and watch for updates, especially as more platforms begin aligning with HMRC’s standards.
It’s worth paying attention to how tokens move between gaming environments and your personal wallet, since that activity could end up in your HMRC file. Whether you’re trading NFTs or spending stablecoins, the broader message is clear: crypto is no longer under the radar.
What Crypto Platforms Must Do
Under CARF, crypto service providers operating in or serving users in the UK must begin capturing and reporting standardized data to HMRC. This includes platforms offering wallet services, marketplaces for NFTs, exchanges, and services managing portfolios or custodial assets.
They must collect:
- Full legal name
- Date of birth
- Country of residence
- Tax identification number (such as a National Insurance number)
- Residential address
They’ll also be required to record transaction-level data such as:
- The type of cryptoasset
- The nature of the transaction (buy, sell, swap, etc.)
- The quantity and value
- Date and time of the activity
This is designed to ensure that crypto is treated similarly to traditional financial products when it comes to oversight. For users, it means less anonymity and more responsibility to ensure tax compliance.
As HMRC clarified, these details will help tax authorities better determine what users owe. If you manage or work within a UK cryptoasset business, you’ll also be responsible for collecting and reporting this information under the new law.
What Information Will Be Collected
The scope of information involved in CARF reporting is significant. Crypto service providers will not only collect personal identifiers but also link those details with real-time and historical transaction data.
You’ll need to provide:
- Identifying details that tie your crypto activity directly to your tax profile
- Verified information that aligns with KYC standards
- Accurate and timely data if you engage in high-frequency or large-value transactions
This marks a shift in how privacy is handled. Anonymous trading or non-declared income from crypto could become much harder to hide, especially once service providers are mandated to send regular updates to HMRC.
The rules apply across a wide range of cryptoasset categories, including:
- Exchange tokens (e.g., Bitcoin, Ethereum)
- Stablecoins
- Security tokens
- Utility tokens
- Non-fungible tokens (NFTs)
Privacy, Compliance, and What Happens Next
There’s already concern around how this data will be stored and shared. Platforms will have to implement secure storage and transmission methods, similar to what banks follow under global tax cooperation laws.
If you use decentralized platforms or non-custodial wallets, you may avoid some of this oversight, at least for now. However, once funds touch regulated services, those transactions become visible.
It’s not just about taxes either. As governments push for greater accountability, service providers could be asked to monitor or restrict certain behaviors. While that’s not currently the case, the groundwork laid by CARF could expand what regulators expect in future.
How to Prepare Now
With over a year before CARF goes live in the UK, crypto users have time to prepare. Here’s what you can do now to make sure you’re ready:
- Audit your existing wallets and confirm you can access transaction histories
- Track any crypto earned through work, services, or platforms like NFT markets and gaming apps
- Use tax tools that sync with exchanges to simplify reporting
- Watch updates from your providers: wallet apps, exchanges, and other crypto services will share their CARF compliance timelines
Even if your crypto platform hasn’t issued new terms yet, these changes are coming. Staying ahead of them now may prevent tax issues later.
For users wanting an up-to-date view of how assets are performing, Coinranking offers a helpful overview of crypto prices and token history. It’s one way to stay informed about the assets you hold and how their movement may affect future tax records.