HMRC’s New Crypto Reporting Rules to Know Before January 2026 

Last updated on 21 February 2026

From 1 January 2026, new HMRC regulations will significantly change how crypto transactions are reported and monitored in the UK. These rules form part of a broader global effort to improve tax transparency and reduce the risk of non-compliance across digital asset markets.

Therefore, if you are an individual investor or a business operating in the crypto space, understanding these changes now will help you avoid penalties later. Moreover, it will give you time to prepare properly.

To help you navigate this shift, let us outline exactly what’s changing, what’s required of you, and how Crypto Accountants can support you in staying compliant.

A Worldwide Structure: The CARF

The Crypto-Asset Reporting Framework (CARF) is designed to bring cryptoasset reporting in line with global tax transparency standards. In other words, it standardizes how tax authorities collect and exchange data related to crypto holdings.

The UK has committed to adopting the framework, which means HMRC will soon begin receiving user data from cryptoasset service providers around the world. Additionally, in many cases, HMRC will also share information with other countries’ tax authorities under automatic exchange agreements.

Importantly, this is not a proposal; it is a confirmed change, and the timeline is clear. Thus, timely preparation is essential.

What Are Cryptoasset Service Providers?

If you use any service that helps you buy, sell, exchange, or manage cryptoassets, it is likely to be considered a cryptoasset service provider under the new rules. This means the regulations apply to a wide range of platforms, including:

• Crypto exchanges
• NFT marketplaces
• Custodial wallet apps with exchange features
• Portfolio management platforms

As a result, both users and service providers must understand their reporting obligations. Furthermore, compliance will not be optional. Consequently, staying informed is your best defence.

At Crypto Accountants, we break down these changes clearly, helping you meet requirements with confidence. Whether you’re an investor or business, our team is ready to guide you through this transition—so that you can focus on growing your assets, not worrying about regulatory pitfalls.

What Cryptoasset Users Must Provide 

From 1 January 2026, you will be required to provide personal or business information to every cryptoasset service provider you use. 

For people: 

• Complete legal name 

• Birthdate 

• Country of residence and residential address 

• Tax Identification Number (TIN), which is typically the Unique Taxpayer Reference (UTR) or National Insurance number for UK citizens 

For entities (companies, trusts, partnerships, charities): 

• Registered legal name 

• Main business address 

• UK company registration number (if applicable) 

• Tax identification number and issuing country 

• Details of controlling persons, such as directors or trustees 

You must ensure this information is accurate. Failure to provide it, or supplying false details, can lead to a penalty of up to £300 per offence. 

International Data Sharing: How HMRC Will Use the Information 

If you are a UK resident using crypto services based in another country that also follows CARF, that country’s tax authority will send your data to HMRC. 

Conversely, if you are a non-UK resident using UK-based crypto providers, HMRC will share your data with your country’s tax authority, provided that country also participates in the CARF regime. 

This means your crypto transactions will no longer be hidden by geography or platform selection. Tax officials will be able to see clearly across borders who owns what and where. 

This Isn’t a New Tax, But It Is a New Level of Enforcement 

These rules do not introduce new taxes. Instead, they support the enforcement of existing UK tax laws relating to cryptoassets. 

The most common tax obligations include: 

Capital Gains Tax (CGT) 

Applies when you: 

• Sell cryptoassets for fiat 

• Exchange one token for another 

• Use crypto to purchase goods or services 

• Gift cryptoassets (with some exceptions) 

Income Tax and National Insurance 

Applies when you: 

• Receive crypto as payment for services 

• Receive crypto from employment 

• Mine or stake tokens 

• Receive airdrops (depending on conditions) 

Once HMRC begins regularly receiving direct data feeds from providers, naturally, it will be much easier for them to identify unreported activity. As a result, patterns of non-compliance will become more visible. Moreover, the use of advanced analytics will enhance detection. Consequently, relying on anonymity, offshore accounts, or decentralised exchanges will increasingly no longer offer meaningful protection. Previously, these methods may have provided a layer of privacy; however, under the new rules, even these avenues are being closely scrutinised. In other words, compliance will no longer be optional but essential.

What You Should Do Now? 

Although the changes are obvious, you may keep ahead of them if you prepare properly. Here’s how to begin: 

1. Identify the Providers You Use 

List all crypto platforms, wallets, apps, or marketplaces you’ve used in the past few years. Check whether they will fall under the new CARF requirements. 

2. Review and Organise Your Records 

You should already be maintaining detailed records of your crypto transactions. Ensure you have: 

• Date and time of each transaction 

• Value in GBP at the time 

• Description of the asset and type of activity 

• Counterparty details (if available) 

3. Prepare Your Tax Identification Details 

Verify that your UTR or NI number is current and consistent across all platforms. For businesses, verify your registration numbers and key personnel details. 

4. Bring Your Tax Reporting Up to Date 

If there is a gap between your historical activity and what has been declared to HMRC, consider making a voluntary disclosure. This can help avoid penalties and reduce interest charges. 

5. Work With a Specialist 

Crypto tax is complex, particularly when you add international reporting, DeFi transactions, NFTs, and staking rewards into the mix. Generalist accountants are unlikely to keep pace with these developments. 

How the Crypto Accountants Can Help? 

Crypto Accountants offer full-service support for individuals, businesses, and crypto-native organisations. Our services include: 

• Personalised crypto tax reviews and advisory 

• CGT and income tax calculations for complex portfolios 

• Preparation for CARF and HMRC compliance 

• Entity structuring and optimisation for Web3 businesses 

• Historic disclosures and crypto reconciliation 

We have already helped dozens of clients prepare for incoming regulatory shifts, and we’re ready to do the same for you. 

Final Thoughts 

The crypto industry is entering a more mature, regulated phase. While the spirit of decentralisation and innovation remains strong, users and businesses can no longer afford to ignore compliance. 

The rules from 1 January 2026 will change how information flows between users, platforms, and tax authorities. Being informed is good, but being prepared is better. 

Get Ahead of the 2026 Crypto Reporting Rules 

If you are unsure whether you are compliant, or if you need help preparing for the new reporting obligations, we will guide you. 

Contact Crypto Accountants today for a consultation. 

We’ll help you review your situation, close any gaps, and ensure you’re fully prepared for the road ahead.