New reporting requirements for crypto asset businesses launching January 2026

HMRC has published guidance for reporting Crypto asset service providers under the new Crypto asset Reporting Framework.

From January 2026, UK businesses facilitating crypto asset exchanges must collect user and transaction data, with the first submissions to HMRC due in May 2027.

The UK is introducing the Organisation for Economic Development (OECD) Crypto asset Reporting Framework (CARF), which standardises global reporting for improved tax transparency, and extending it to include domestic reporting 

The framework requires any UK-based business that either transacts crypto assets on behalf of users or provides a means for users to transact crypto assets (such as bitcoin, stable coins and non-fungible tokens (NFTs) to report user information in XML format, with penalties for non-compliance.

What counts as a crypto asset

A crypto asset is a digital representation of value that uses a cryptographically secured distributed ledger (or similar technology) to validate and secure transactions.

To count as a crypto asset under CARF, they must also:

• be used for payment or investment purposes

• not be reportable under the Common Reporting Standard as either a Central Bank Digital Currency (CBDC) or a Specified Electronic Money Product (SEMP)

What counts as UK-based

Your organisation is considered UK-based if any of these criteria apply:

1.    you’re a tax resident in the UK

2.    your business is incorporated in the UK

3.    your business is managed in the UK

4.    you have a regular place of business or branch in the UK

If the criteria apply to both the UK and another country that follows CARF rules, you’ll only need to report in one country.

To work out which country to report in, use the criteria as a hierarchy with tax residence at the top. You should report in the CARF country that is highest on the hierarchy.

For example, if you’re a tax resident in France and your business is incorporated in the UK — you only have to report in France. This is because tax residence is first on the hierarchy.

If two countries are at the same level on the hierarchy, you can choose which country you report in. For example, if you’re a tax resident in both the UK and Germany, you can choose to report in either the UK or Germany.

For more details contact Amin & Co Accountants.