New crypto reporting rules in the UK – prepare for 2026 now!

New obligations for Crypto Firms in the UK – what’s changing from 2026?

From 1 January 2026, companies providing crypto-related services in the UK will be required to report user data and transactions to HMRC. This is part of the implementation of the international CARF (Crypto-Asset Reporting Framework) standards. Whether you run a crypto business or invest privately, find out what needs to be reported, when, how to stay compliant and avoid penalties.

A quick look back: Digital Platform Reporting from 2024

In January 2024, HMRC introduced new rules requiring digital platforms—like those used for selling goods, renting property, or offering freelance services—to report user income directly to HMRC. This was a major move to close the tax gap in the gig economy.

Now, HMRC is going further - HMRC is turning up the lights on crypto transparency.

What’s new from 2026: Cryptoasset Reporting Framework (CARF)

From 1 January 2026, if you provide cryptoasset services in the UK, you’ll be required to:

• Register with HMRC as a reporting cryptoasset service provider
• Collect and verify user information
• Track and report crypto transactions
• Notify users that their data is being shared with HMRC
• Submit annual reports to HMRC

This is part of the UK’s adoption of the OECD’s Cryptoasset Reporting Framework (CARF), extended to include domestic reporting.

When and where will the first crypto reports be filed?

• The first reporting period will cover the entire 2026 calendar year.
• The first reports must be submitted to HMRC by 31 May 2027.
• Reports will be filed directly with HMRC using systems outlined in future guidance.

What happens if you don’t comply?

HMRC includes specific penalties for non-compliance:

• Up to £100 per user for failure to apply due diligence procedures
• Additional penalties for failing to report or submitting inaccurate information

What this means if you buy or sell crypto?

If you’re an individual investor, here’s what you need to know:

• Your crypto activity will be visible to HMRC—even if you don’t report it yourself
• Capital Gains Tax (CGT) applies when selling crypto for profit—even crypto-to-crypto swaps
• Gifting crypto (except to a spouse or civil partner) is a taxable event
• Crypto received via mining, staking, or payment for goods and services may be subject to Income Tax
• You must keep detailed records of all crypto transactions
• You can offset capital losses against gains to reduce your tax bill

Common fears about Crypto and Tax—and the truth

• “What if I’ve made mistakes in the past?” – You can still come forward and correct things safely
• “Will HMRC come after me?” – Being proactive is your best defence
• “It’s all too complicated.” – We’ll help you understand and comply with ease

What this means for Our Clients

We’re here to help you:

• Understand your crypto tax obligations
• Register with HMRC as required
• Prepare and submit your Self Assessment
• Avoid penalties and stay ahead of HMRC
• Get peace of mind in a fast-changing space

Final thought: the rules are changing—but You don’t have to be caught off guard

The truth here is simple:

Crypto is being brought into the light. You can either prepare—or be surprised.

We’re here to make sure you’re prepared!