UK Leads Worldwide Crypto Tax Compliance with HMRC Enforcement

The United Kingdom has now started the enforcement process for the new crypto tax reporting regulations from January 1st. The new regulations are in line with the Crypto-Asset Reporting Framework set by the OECD and represent a significant shift in the way the UK government monitors the activities surrounding crypto assets. Over 40 countries participated with the UK in launching the framework, making the country one of the first 48 adopters.

Under the new rules, major exchanges must collect transaction records and submit details of users’ tax residency and trading activity to HM Revenue & Customs. Authorities want stronger control over previously undeclared income and clearer visibility across international crypto movements.

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Exchanges Begin Mandatory User Reporting

HMRC plans to begin cross-border data sharing in 2027 with participating jurisdictions. A total of 75 countries have already committed to the framework. The United States plans implementation in 2028 and international data exchange in 2029. The system aims to ensure non-anonymity for crypto holders and bring certainty to global regulators.

The exchanges will need to obtain the prices of the purchases, the prices of the sales, the profit amounts, and other relevant taxation information. These measures will become part of the synchronized global regulation of the digital assets industry. Pressures for tightening the regulation have been rising in the UK for over a year, as the increase in crypto use has been observed, along with concerns about misreporting.

Global Coalition Expands Monitoring Efforts

There is also a push for enhanced clarity following warnings of a lack of proper disclosure of profits from many investors under current guidelines. The framework will enable most of the review process to become automatic, according to one OECD insider. The momentum for the implementation of the framework remains strong worldwide. Singapore, Switzerland, Hong Kong, and the UAE will implement reporting later in this decade.

Concurrently, US regulators are assessing the proposed measure to better supervise offshore crypto asset holdings. The UK has already tightened coordination efforts in a joint task force with the US in September 2025 to better supervise the industry and combat money laundering.

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