UK Launches Crypto Asset Reporting Framework, Expected Tax Revenue Increase of £315 Million
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- New Tax Compliance Regulation: The UK government officially launches the Crypto Asset Reporting Framework (CARF), requiring service providers to submit user transaction data by January 2026, aiming to close the tax gap and potentially generate £315 million in tax revenue by 2030.
- User Information Requirements: Crypto exchanges, brokers, and wallet providers must collect user names, addresses, tax residences, and transaction summaries to ensure users meet their tax obligations, thereby enhancing overall tax transparency and compliance.
- Penalty Mechanism: Individuals and service providers failing to comply with the new regulations may face fines of up to £300 per user, underscoring the importance of accurate data submission to avoid financial penalties and ensure tax revenue aligns with expectations.
- Global Standards Alignment: The implementation of CARF aligns with standards set by the OECD, aiming to effectively regulate crypto exchanges, custodians, and broker-dealers, enhancing industry transparency and promoting global compliance.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
