The UK and over 40 other countries have launched a new global system to track crypto taxes. The goal is simple. Making it harder for crypto investors to evade tax authorities.
From January 1, the UK’s major cryptocurrency exchanges must now collect full records of user transactions. This includes how much cryptocurrency investors bought, how much they sold, and how much profit they made. Additionally, exchanges must also record where users pay their taxes and send this information to HM Revenue and Customs.
These rules are part of a global plan created by the Organization for Economic Cooperation and Development, known as the Cryptoasset Reporting Framework, or CARF. The United Kingdom is one of the first 48 countries to implement this system.
According to the Financial Times, on January 1, the United Kingdom and more than 40 other countries began implementing new tax reporting rules on cryptocurrencies under the OECD’s Crypto Asset Reporting Framework (CARF). Major exchanges must collect and report transaction data and tax residency of UK users to HMRC.…
-Wu Blockchain (@WuBlockchain) January 1, 2026
Crypto data will be shared globally
For now, the exchanges are collecting data. The biggest change comes next. From 2027, HMRC will begin to automatically share crypto data with other tax authorities. This includes all countries in the European Union, as well as countries like Brazil, South Africa and the Cayman Islands.
In total, 75 countries have agreed to adopt the rules. Major crypto hubs such as the UAE, Singapore, Hong Kong, and Switzerland plan to join later. Some reports expect the United States to follow next.
Additionally, tax experts say this is a major change. Crypto investing is no longer private as many users once believed. Governments will now have a much clearer idea of who is making money and where.
What this means for UK crypto investors
UK policies tax crypto profits as capital gains tax, once they exceed the £3,000 annual allowance. In some cases, the rules tax frequent transactions as income.
Crypto tax data collection has officially begun in 48 jurisdictions, well ahead of CARF going live in 2027.
It’s not FUD – it’s infrastructure
Governments are preparing for automatic crypto information sharing, just like CRS did for banks.
➤ The access and exit ramps will get… pic.twitter.com/ziV7CpeKoF
– BlockchainBaller (@bl_ockchain) January 2, 2026
HMRC has already stepped up enforcement. He sent more warning letters, added a crypto section to tax returns and encouraged voluntary disclosures.
With global data sharing coming, experts say crypto investors should take compliance seriously. The era of discrete crypto gains is coming to an end.
