A major shift in global crypto oversight is now underway, as the Financial Times reports that the United Kingdom and more than 40 other countries have begun enforcing new crypto tax regulations starting January 1.
The rules are based on the Crypto-Asset Reporting Framework (CARF), a global standard developed by the Organisation for Economic Co-operation and Development to improve tax transparency in the digital asset sector.
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What the New Rules Require
Under CARF, major crypto platforms must now:
Collect detailed transaction data from users
Record tax residency information
Report crypto trading activity directly to national tax authorities
In the UK, this data will be submitted to HM Revenue and Customs, significantly expanding the government’s visibility into crypto-related income and capital gains.
The United Kingdom is among the first 48 jurisdictions to formally adopt and implement the framework.
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Global Data Sharing Begins in 2027
One of CARF’s most consequential features is automatic international data exchange.
Beginning in 2027, UK authorities will start sharing crypto-related tax information with EU member states and other participating jurisdictions, including Brazil, the Cayman Islands, and South Africa. This is intended to curb offshore tax evasion and close reporting gaps that previously allowed crypto users to move assets across borders with limited oversight.
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How Far the Framework Will Go
So far, 75 countries have committed to implementing CARF:
Early adopters began enforcement in 2026
Broader data-sharing networks activate in 2027
The United States plans to adopt CARF in 2028, with cross-border information exchange expected to start in 2029
Once fully operational, CARF will represent one of the most comprehensive global tax reporting systems ever applied to digital assets.
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What It Means for Crypto Users
For traders and investors, the era of largely opaque crypto taxation is ending. Authorities will increasingly rely on automated reporting rather than self-disclosure, making compliance far more difficult to avoid.
While regulators argue the framework brings legitimacy and fairness to the crypto economy, critics warn it could erode privacy and increase compliance burdens—especially for retail users.
Either way, CARF marks a decisive step toward integrating crypto into the traditional global tax system.
