UK Tightens Crypto Tax Rules: New Reporting Requirements Aim to Combat Illicit Activity

The United Kingdom is bolstering its approach to cryptocurrency regulation with new reporting requirements that will begin in 2026. These changes expand the scope of the existing Cryptoasset Reporting Framework (CARF) and give HM Revenue & Customs (HMRC) access to comprehensive transaction data from both domestic and international sources for UK-based crypto users. This move aims to enhance tax compliance, deter illicit activity in digital assets, and align with global regulatory standards ahead of its planned international data exchange in 2027.