The Regulations implement OECD’s Crypto-Asset Reporting Framework (CARF) and will come into force on 1 January 2026.
The UK Treasury has enacted Regulations 2025 (SI 2025/744) on 24 June 2025; mandating UK reporting crypto asset service providers (RCASPs) to collect and report annual information on users’ in-scope crypto asset transactions, activities, and tax residency.
The Regulations implement OECD’s Crypto-Asset Reporting Framework (CARF) and will come into force on 1 January 2026.
A cryptoasset is a digital representation of value that uses a cryptographically secured distributed ledger (or similar technology) to validate and secure transactions.
To count as a cryptoasset under CARF, they must also:
- be used for payment or investment purposes;
- not need to be reported elsewhere under the Common Reporting Standard.
Under SI 2025/744, RCASPs must register with His Majesty’s Revenue and Customs (HMRC) and submit reports electronically. Providers must notify non-UK users that their information will be exchanged with other CARF jurisdictions.
The CARF provides visibility on the transactions of users of cryptoassets.
The information collected includes the activities and tax residency of their users. This information will be sent to HMRC whereafter information on non-UK users will be exchanged with jurisdictions who have also implemented the CARF. The data collected and received from other jurisdictions will be used to tackle tax evasion, avoidance and help customers to meet their tax obligations.
HMRC’s policy paper highlights that crypto assets are a rapidly evolving area with previously limited means of data collection. The regulations aim to prevent taxpayers from avoiding reporting obligations under the Common Reporting Standard (CRS) by transferring assets into crypto assets. They also contain specific penalties for non-compliance.
Earlier, the UK tax authority (HMRC) released guidance on 14 May 2025 outlining reporting obligations for cryptoasset data under the OECD’s Cryptoasset Reporting Framework (CARF), set to take effect from 1 January 2026.
