UK-based users of major cryptocurrency exchanges will start the new year with detailed transaction data collected automatically as UK authorities prepare to crack down on tax avoidance.
According to new HM Revenue and Customs (HMRC) rules, crypto exchanges operating in the UK will be required to start collecting complete transaction records for all UK customers from January 1, 2026.
“The platform is set to keep a record of this information from 1 January 2026, ahead of sharing with HMRC next year, allowing the tax office to match the data it receives with tax returns,” Seb Murray, CEO of tax insurance provider Qdos, told the FT.
UK tax experts say this will allow crypto users, traders and investors to conduct business in digital assets to avoid sanctions until the end of 2026.
New HMRC guidelines align the UK with the OECD Crypto Asset Reporting Framework (CARF). CARF is designed to bring more transparency to the fast-growing digital asset market and has already been rolled out in the European Union, Canada, Australia, Japan, South Korea, and more.
Cryptocurrency exchanges classified as ‘reporting crypto asset service providers’ will be required to send detailed information directly to HMRC in 2027. That data will allow HMRC to determine the amount of tax that crypto users will have to pay. HMRC will sanction platforms that are not compliant.
“This signals a significant change in the way crypto transactions are monitored from a tax perspective,” Maley told the FT.
Read more: UK proposes ‘no gain, no loss’ tax system for DeFi that would bring ‘huge benefits’ to users
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