Global Crypto Compliance Era Kicks Off as UK Adopts OECD Transparency Rules

The UK's approach to crypto regulation is shifting toward stricter oversight, with no immediate tax hikes for digital assets, according to a Gemini executive. The developments align with the country's adoption of the OECD's Crypto-Asset Reporting Framework (CARF), which aims to close tax transparency gaps in the crypto sector. HM Revenue and Customs (HMRC) recently updated its guidance to reflect the CARF framework, which will take effect on January 1, 2026. This move signals a broader global trend to integrate crypto into traditional financial reporting systems, with penalties for non-compliance already outlined by tax authorities.

The UK's implementation of CARF mirrors the OECD model but includes limited local adjustments. The framework requires crypto service providers, such as exchanges and brokers, to collect and report user data, including tax residency and transaction details, to HMRC. These reports will be shared internationally, enhancing cross-border tax enforcement. HMRC's guidance emphasizes penalties for failures in due diligence, record-keeping, and timely reporting, underscoring the regulatory weight of the new rules.

Globally, CARF represents a watershed moment for crypto regulation. Developed by the OECD, the framework mandates that reporting crypto-asset service providers gather information on users and transactions involving assets like Bitcoin, stablecoins, and certain NFTs. These data points will be exchanged among jurisdictions, aligning crypto with traditional financial transparency standards under the Common Reporting Standard (CRS). Around 70 countries, including the UK, US, and EU members, have committed to adopting CARF, with the first international data exchanges expected in 2027 based on 2026 transaction data.

The scope of CARF is broad but not universal. Reporting CASPs include exchanges, brokers, and platforms facilitating crypto transactions, while self-custody wallets and non-commercial platforms like CoinMarketCap are excluded. Reportable activities span crypto-to-fiat trades, transfers between wallets, and retail payments exceeding $50,000. However, CBDCs, certain e-money, and purely collectible NFTs fall outside the framework.

For crypto businesses, compliance will require overhauling systems to automate data collection, KYC processes, and annual reporting. Firms must also update onboarding procedures and privacy policies to reflect new obligations. Legal experts emphasize that early preparation is critical to avoid penalties and operational disruptions, as CARF compliance is no longer optional but a strategic imperative for long-term viability.

The UK's adherence to CARF reflects a global shift toward integrating crypto into regulated financial systems. While the Gemini executive highlighted the absence of tax hikes, the regulatory burden on service providers is undeniable. As the 2026 deadline approaches, crypto firms must align with both UK and international standards to navigate this evolving landscape.