UK to Require Full Crypto Transaction Reporting Beginning in 2026

• UK to mandate full crypto transaction reporting from 2026 under expanded CARF rules.
• New “no gain, no loss” tax plan delays DeFi capital gains until token disposal.
• FCA policies face criticism for creating friction and limiting stablecoin usability.

The United Kingdom is considering a shift in its oversight of digital-asset activity, confirming that domestic crypto platforms will be required to report detailed user transaction data starting in 2026.

The plan amounts to the country’s broadest expansion of the Cryptoasset Reporting Framework (CARF) to date and will give His Majesty’s Revenue and Customs (HMRC) automatic access to both domestic and foreign crypto information for the first time. Officials noted that the decision aims to strengthen tax transparency ahead of CARF’s initial global data exchange cycle, scheduled for 2027.

Framework Expands to Capture Local Activity

CARF, introduced by the Organisation for Economic Co-operation and Development in 2022 and published publicly in 2023, was originally built to standardize the exchange of crypto transaction information among tax authorities.

While the framework mainly targets cross-border activity, UK policymakers opted to widen its application to domestic users, citing a need to prevent digital assets from becoming an “off-CRS” class that evades monitoring under the Common Reporting Standard.

Under the updated rules, crypto service providers are required to verify user identities, conduct background checks, and submit annual reports that include transaction-level records. HMRC stated in an accompanying policy paper that transactions solely within the UK will fall outside the automatic global exchange but will still be captured under the national reporting requirement.

Officials described the combined approach as a means to streamline reporting for firms while providing authorities with a more comprehensive dataset for identifying noncompliance and assessing taxpayer obligations.

Related: UK Tax Authority Doubles Crypto Investor Warnings in Crackdown on Unpaid Taxes

UK Introduces “No Gain, No Loss” Approach

Alongside the CARF expansion, the UK government unveiled a “no gain, no loss” tax mechanism earlier this week. According to published info, the measure delays capital gains obligations for decentralized finance users until they dispose of their tokens. Industry feedback submitted during the consultation period was broadly positive, according to government statements.

Regulatory Pressures Draw Industry Pushback

The tightening of reporting standards has coincided with renewed criticism of existing FCA policies. In a shared post on X, Stani Kulechov argued that the Financial Promotions regime imposes extensive compliance frictions on stablecoin services, including long questionnaires and imposed cooldown periods. He noted that the framework categorizes stablecoins alongside highly volatile assets, creating barriers for users and developers.

Another industry participant, Alexis Onchain, described past interactions with the FCA as unproductive, stating that regulatory consultations often resulted in decisions that diminished user experience and created additional hurdles for compliant service providers.

Related: UK Fraud Office Probes Basis Markets Collapse After $28M Fundraising