The OECD’s Crypto‑Asset Reporting Framework (CARF) – a new standard designed to bring crypto transactions into the same automatic information exchange system used for traditional accounts under the Common Reporting Standard (CRS) – is now operational in 48 countries, including the UK.

CARF was introduced to ensure tax authorities can automatically receive information about crypto‑asset transactions. Unlike traditional finance, cryptoassets can be transferred without banks or central administrators, creating opportunities for taxpayers to conceal assets or income. The framework aims to close that gap.

Effective from 1 January 2026, UK cryptoasset service providers (CASPs) – such as exchanges, custodians and wallet providers – must collect and report, on an annual basis, information on in‑scope crypto transactions and the activities and tax residence of their users. The data will be sent to HMRC, which will exchange information on non‑UK users with other jurisdictions that have implemented CARF.

“Cryptoassets are a rapidly expanding and developing area in relation to which tax authorities have historically had limited means to gather data,” the government said. It added that the regime is intended to deter attempts to evade CRS reporting by shifting funds into cryptoassets.

From 2027, tax authorities will automatically share data received from exchanges with other participating jurisdictions, including all EU countries, the Channel Islands, Brazil, the Cayman Islands and South Africa.

Jurisdictions expected to begin exchanges in 2028 include Australia, Canada, Hong Kong, Kenya, Nigeria, Singapore, Switzerland, Thailand and the United Arab Emirates, with the US slated to exchange from 2029. Argentina, El Salvador, Georgia, India and Vietnam have not yet committed to implement CARF.

The Organisation for Economic Co‑operation and Development (OECD) is an international body that works with governments to develop policies that improve economic and social well‑being, including global standards on taxation, trade, finance and transparency.

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