New requirements effective from 1 January 2026
From 1 January 2026, anyone who owns cryptoassets, such as Bitcoin, Ethereum and Non-Fungible Tokens (NTFs), will be required to provide personal information to every crypto service provider they use, to ensure they are paying the correct amount of tax. Service providers include all UK and international crypto exchanges, wallet applications and any online platforms used to exchange NFTs.
HMRC reporting obligations for service providers
Cryptoasset service providers will pass this information to HMRC. Any failure to comply with the new reporting obligations may also result in a £300 fine being imposed on the providers by HMRC.
Enhancing tax transparency and compliance
Although cryptoasset owners are already required to report any gains or income in their self-assessment tax returns, the new framework is designed to increase transparency and reduce the risk of under-reporting or tax avoidance on crypto transactions.
Required personal information
The information that must be provided includes:
- Full name
- Address
- Date of birth
- National Insurance Number
- Country of residence
- Summary of crypto transactions
Where the cryptoasset owner is a company, trust, or partnership, tax identification and company numbers must also be supplied.
Part of the International Cryptoasset Reporting Framework
This new measure—part of the Cryptoasset Reporting Framework (CARF)—is being introduced to align the UK with the international standards set by the Organisation for Economic Co-operation and Development (OECD). The goal is to standardise global tax reporting, close existing gaps and improve transparency in crypto transactions. This will make it easier for HMRC to exchange cryptoasset transaction information with tax authorities in other participating countries.
Service providers' compliance obligations
CARF also places an obligation on crypto service providers to report this information fully and accurately. Service providers may face a penalty of up to £300 per user for failure to comply.
For more information, please see the Policy Paper on the Implementation of the Cryptoasset Reporting Framework.
This article was co-written by George Munro, Solicitor in our Asset Protection team.
