HMRC revises crypto reporting rules.
The UK tax authority, His Majesty’s Revenue & Customs (HMRC), has revised its guidance on the Crypto Asset Reporting Framework (CARF) on 5 November 2025 within the International Exchange of Information Manual, starting at IEIM800001.
From 1 January 2026, new customers of Reporting Crypto Asset Service Providers (RCASPs) must complete a self-certification before carrying out crypto transactions. RCASPs that fail to collect this certificate will face a GBP 300 penalty.
Additional penalties will apply for failures to apply due diligence, maintain required records, submit timely reports, notify reportable users, or register with HMRC. While the first CARF reports are not due until May 2027, providers must comply from January 2026 to avoid penalties.
HMRC has also updated its Cryptoassets Manual to explain business obligations under CARF. This includes reporting details of crypto activity and due diligence on users, covering cryptocurrencies, stablecoins, certain NFTs, and other digital assets.
CARF, developed by the OECD, establishes an international standard for the automatic exchange of information on crypto-assets between tax authorities. RCASPs must submit user and transaction data to HMRC, which will be shared with other jurisdictions, ensuring global compliance with the framework.
