These rules are based on the Crypto Asset Reporting Framework (CARF) developed by the Organization for Economic Cooperation and Development (OECD). Major cryptocurrency exchanges are now required to collect full transaction records for UK users and report their trading activities and tax residency status to Her Majesty’s Revenue and Customs (HMRC).
Note that the UK is among the first 48 countries to adopt the framework. From 2027, HMRC will automatically share relevant data with EU member states and other participating countries, including Brazil, the Cayman Islands and South Africa.
A total of 75 countries have committed to implementing CARF, with the United States planning to adopt it in 2028 and begin sharing information in 2029.
