The EU and UK have rolled out new AML and tax reporting regulations for crypto exchanges, positioning digital assets in the global system for automatic tax information sharing.
As of 1 January 2026, crypto companies operating across the EU and UK are required to comply with the Crypto-Asset Reporting Framework (CARF), which was created by the Organisation for Economic Co-operation and Development (OECD).
Implementing CARF
With these newly introduced rules, crypto platforms must automatically report users’ account details and transaction data to tax authorities.
CARF focuses on bridging the gaps in international tax reporting, which, until now, enabled crypto assets to position themselves outside existing information exchange systems. The new regulations now demand crypto asset service providers (CASPs), including exchanges, to collect and submit data regularly.
Additionally, crypto platforms are required to collect users’ identity information, account details, and transaction records. Afterwards, they must submit this information to domestic tax authorities, with the system replacing dependence on case-by-case cooperation with investigators.
Furthermore, the current announcement brings the UK as part of the 75 countries and jurisdictions that have committed to employing CARF. As of 1 January 2026, all 27 EU member states started to gather crypto asset data under DAC8, the EU’s implementation of CARF. By 30 September 2027, all these countries intend to begin the process of exchanging information.
CARF also changes the UK’s previous approach to taxing crypto transactions, which initially started in 2014. Before CARF’s go live, exchanges offered user data only when investigators requested it. Now, platforms are required to automatically report all users’ accounts and transaction information.
When it comes to users, if they do not provide the required identity or account data, they can face penalties. Additionally, penalties may be applied if individuals intentionally conceal details that prevent reporting to HMRC, the UK’s tax body.
In numbers, the HMRC projects that the framework is set to raise GBP 315 million in unpaid taxes by April 2030. Currently, the country has approximately six to seven million crypto users, which accounts for nearly 12% of the adult population in the region.
