Cryptoasset reporting requirements introduced

The Reporting Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations SI 2025/744 will require UK businesses which transfer relevant cryptoassets or exchange relevant cryptoassets for other cryptoassets government issued (fiat) currency or goods or services on behalf of their customers to perform due diligence and report customer details and relevant transaction data to HMRC. The regulations set out the details of those requirements including penalties for compliance failures. These will include automatic exchange of information between HMRC and other tax authorities on cryptoasset activities.

This is part of the UK’s implementation of the OECD Cryptoasset Reporting Framework (CARF) which aims to facilitate transparency and compliance around trading in cryptoassets. The regulations come into force on 1 January 2026. HMRC have also issued an explanatory tax information and impact note.