UK and International Tax news
Implementation of Cryptoasset Reporting Framework
Wednesday 3rd September 2025
HMRC has recently issued their paper on the Implementation of the Cryptoasset Reporting Framework (CARF) which is due to come into force on 1 January 2026.
The CARF introduces a requirement for UK reporting cryptoasset service providers (RCASPs) to register with HMRC’s Automatic Exchange of Information portal. This includes those who are not required to report because they have made a notification to HMRC that they are reporting in another tax jurisdiction within the CARF. This will inform HMRC of the population of UK RCASPs, all of which will have due diligence requirements.
CARF will require RCASPs to collect information in relation to in scope transactions, on an annual basis under the Reporting Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations SI2025/744. These provide for mandatory registration of RCASPs and contain specific penalties for non-compliance. Information collected will be sent to HMRC and exchanged with jurisdictions which have also implemented the CARF. In return, the UK will receive information about UK tax residents’ cryptoasset activities with RCASPs based in other participating CARF jurisdictions.
In scope UK based RCASPs will include businesses and individuals tax resident in the UK, managed or incorporated in the UK or have a branch in the UK.
For individuals, information to be collected will include name, date of birth, address, country of residence, national insurance number and/or unique taxpayer reference number. For entities, details of registered company name, registered address, and company registration number will be required. Details relating to individual transactions including the value, type of cryptoasset and the number of units will also be reportable.
The first reports will need to be shared online using an XML schema and will be due by 31 May 2027 for the 2026 calendar year. RCASPs will need to have registered with HMRC by 31 January 2027. Failure to do so may result in penalties. There will also be penalties for failure to keep records, reporting on time and providing information to HMRC. Penalties may also be charged for inaccurate or incomplete reports and for failing to apply due diligence procedures.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.
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