What To Know:
- Crypto service providers across 48 countries are now required to collect detailed user and transaction data under the OECD’s crypto tax framework.
- CARF mandates identification and activity tracking across exchanges, wallets, NFT marketplaces, brokers, and crypto ATMs, aiming to reduce tax evasion and improve control of cross-border crypto transactions.
- In the UK, users must link crypto activity to their tax records, with penalties for non-compliance and reported data used to assess capital gains, income tax, and related liabilities.
Crypto tax rules in 48 countries will enter a new phase with the government planning to record crypto wallet transaction data under a global reporting regime backed by the OECD. While formal information sharing between tax authorities will only begin in 2027, the groundwork is already being put on. From January 1, crypto service providers in participating jurisdictions are required to start collecting detailed user and transaction data.
Crypto Tax Data to be Collected in 48 Countries
The framework behind this shift is the Crypto-Asset Reporting Framework, or CARF, developed by the Organisation for Economic Co-operation and Development. Its aim is to close long-standing gaps in tax reporting linked to cryptoassets, which have often operated across borders with limited control.
CARF was finalised by the OECD in 2022 after years of discussions driven by G20 finance ministers. Since then, countries have moved at different speeds. The first group of 48 jurisdictions plans to begin exchanging data in 2027, meaning transaction records collected in 2026 will be shared with foreign tax authorities. This group includes major European economies, Japan, South Africa, the United Kingdom, and several offshore financial centres.
A second batch of 27 jurisdictions, including Australia, Canada, Singapore, Switzerland, and the UAE, will begin collecting data by Jan 1, 2027, and exchanges will start a year later. The US is currently listed as planning its first exchanges by 2029. Five jurisdictions, including India and El Salvador, have not yet formally committed, but some have hinted at an intention to do so.
According to the OECD, many countries preparing for the 2027 rollout already have legislation in place or are in the final stages of enforcement. These laws require crypto service providers to identify users and track activity across a broad range of services. That includes centralised exchanges, certain decentralised platforms, brokers, dealers, crypto ATMs, wallet applications, NFT marketplaces, and portfolio management services.
By standardising data collection and exchange, CARF seeks to reduce opportunities for tax evasion and limit the use of cryptoassets for illicit financial flows.
In the UK, updated guidance published on January 1, 2026, offers a clear picture of how this will work in practice. Anyone using a cryptoasset service provider must supply identifying information that links their crypto activity to their tax record. Individual users are required to provide their full name, date of birth, residential address, country of residence, and a tax identification number such as a National Insurance number or Unique Taxpayer Reference. Entities must disclose business registration details, addresses, tax identifiers, and, in some cases, information about controlling persons.
These requirements apply even when users rely on non-UK platforms. If both countries follow CARF rules, data will be shared between tax authorities. UK users dealing with offshore platforms may therefore still see their activity reported to HMRC. Failure to provide accurate information can result in penalties, starting at £300 for UK providers and potentially higher amounts for offshore cases.
Once reported, the data can be used to assess capital gains tax, income tax, and national insurance contributions. Selling, exchanging, or spending crypto may trigger capital gains tax. Receiving crypto through mining or employment can lead to income tax liabilities. HMRC has also warned that penalties for unpaid tax can reach up to 100 percent of the amount due, with higher sanctions possible for offshore matters.
CARF is formally limited to tax reporting, but crypto tax software firm TaxBit has noted that the volume and granularity of data collected could eventually offer authorities deep visibility into crypto ownership patterns. That could assist in linking wallets to real-world identities and supporting financial crime investigations.
Also Read: Crypto Regulation in the UK: Complete Guide on Crypto Tax
