UK Enforces Sweeping Crypto Tax Reporting Rules, Forcing Exchanges into Full HMRC Transparency
Key Takeaways:UK Adopts OECD Crypto Reporting FrameworkWhat Crypto Platforms Must ReportWho Qualifies as a Reporting Cryptoasset Service Provider (RCASP)Domestic Reporting Expands HMRC’s ReachCRS Amendments Tighten Financial Reporting
The UK will also revise the Common Reporting Standard in conjunction with the CARF that regulates the reporting of the non-resident account holders by the banks and financial institutions.
The amendments broaden the scope of assets that have to be covered, require registration of reporting institutions that are required to be mandatory and the structure of penalties is consistent with other digital reporting regimes.
Both amendments of CARF and CRS will be effective starting January 2026, and both will have the same reporting dates to ease reporting among institutions that fall under the two regimes.
Although there were fears by some industry players that operational strain would be experienced, the majority of the players were in favor of timelines alignment in order to curb fragmentation.
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