UK Mandates Crypto Reporting by 2026
Guides
GTP, CIBA
Updated:
Update Due:
This piece was originally published in June 2025 and updated in December 2025. It captures the regulatory and reporting landscape as it stood at that time. Some developments described here have since evolved, including the implementation of domestic CARF reporting from 1 January 2026. For current guidance on HMRC's cryptoasset data collection powers, reporting timelines, and what this means for your Self Assessment, see our comprehensive HMRC, CARF and Crypto Audit Risk guide.
Understanding the Cryptoasset Reporting Framework
The CARF, developed by the Organisation for Economic Co-operation and Development (OECD), mandates that Reporting Cryptoasset Service Providers (RCASPs) collect and report detailed information about their users and transactions. This includes:
- Personal Information: Names, addresses, and taxpayer identification numbers.
- Transaction Details: Types of transactions, amounts, dates, and counterparties involved.
- Valuation Information: The value of digital assets at the time of the transaction.
HMRC will utilise this data to detect and tackle tax non-compliance, both domestically and internationally.
The first reports are due by May 31, 2027, covering activities from the 2026 calendar year.
Domestic Reporting: A New Requirement
In addition to international reporting, the UK government has extended the CARF to include domestic reporting. This means that UK-based RCASPs will be required to report on UK residents' digital asset activities. This extension aims to streamline third-party reporting requirements and improve the efficiency of HMRC's operations.
Penalties for Non-Compliance
Failure to comply with CARF reporting requirements can result in significant penalties. Proposed penalties include:
- Late Reports: A fixed penalty of £5,000, with daily penalties of £600 if the failure continues.
- Due Diligence Failures: A penalty of £100 per individual customer for whom due diligence requirements were not met.
These penalties underscore the importance of timely and accurate reporting.
What must I do, and when?
Now (2026): For Preparation and Setup
Make sure your records are accurate and complete across all wallets and exchanges. Assess your use of platforms to ensure they are operating within CARF-compliant jurisdictions. Contact a professional to identify potential tax liabilities from previous years that might affect future reporting.
Before the First Filing Deadline (Q1 2027)
The first reports are due May 31, 2027, covering 2026 calendar year activity. Work with a professional to review and audit all transaction records. They can assist to resolve discrepancies or missing data and ensure your position complies with both international and UK-specific requirements.
You Should Definitely Seek Help If:
- You've traded on multiple platforms or used decentralised exchanges (DEXs).
- You've engaged in complex transactions like staking, NFTs, or DeFi lending.
- You're unsure how to value your digital asset holdings accurately at each transaction point.
- You don't have complete records of all your transactions.
- You're a business or high-volume trader with significant exposure to digital assets.
CountDeFi works with UK investors to help them calculate their crypto gains accurately whilst staying compliant with rules and regulations. If you are not sure where you stand, a conversation costs nothing. Book a free call with our UK team.
