If you’re working in crypto or Web3, it’s time to sit up and pay attention especially if you're based in the UK. From 2026, every crypto transaction made by customers will have to be reported to HMRC. Yes, every single one.
This new rule, announced by HM Revenue and Customs, is part of a broader international effort to tighten tax transparency around digital assets. The UK is aligning with the OECD’s Crypto-Asset Reporting Framework (CARF), a global standard designed to stop tax evasion in its tracks.
So, what does this actually mean for crypto professionals, businesses, and investors? And what should you be doing about it now?
Let’s break it down.
What’s Changing?
Under the new rules, all crypto asset service providers (think exchanges, brokers, wallet providers) will be required to report transaction data to HMRC. This includes:
- Who’s buying and selling
- How much they’re trading
- When and where transactions are taking place
This goes way beyond existing Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. It’s about creating a detailed, transparent trail of activity that tax authorities can monitor in real time.
Companies who fail to comply or accurately report transactions may incur fines of up to £300 per user. Guidance on how companies can comply with this framework is set to be issues by UK Revenue and Customs in due course.
If you thought crypto was still the “Wild West”, think again.
Why Now?
The UK is jumping on board with CARF alongside 47 other countries, including Germany, France, and Japan. The goal? To create a standardised approach to crypto tax reporting across borders.
The changes reflect the UK government’s aim to establish a more robust regulatory framework; one that supports industry growth while still protecting consumers.
In line with that, UK Chancellor Rachel Reeves introduced a draft bill in April to bring crypto exchanges, custodians and broker-dealers within the government's regulatory reach, aiming to combat scams and fraud. As Reeves put it: “Today’s announcement sends a clear signal: Britain is open for business - but closed to fraud, abuse, and instability.”
It’s a big step towards legitimising the space. The more transparent things are, the more confidence investors and institutions will have in digital assets.
But for firms operating in this space, it means major changes. Systems will need upgrading. Compliance teams will need expanding. And the talent to do all that? You guessed it, it’s in high demand.
What This Means for Crypto Businesses
Whether you’re a global exchange or a start-up developing the next DeFi platform, you’ll need to make sure your systems can collect and report customer data accurately and securely.
That means:
- Reviewing your current compliance processes
- Investing in RegTech or reporting tools
- Hiring experts in crypto regulation, data security, and reporting
Let’s be honest: it’s a challenge. But it’s also a chance to show your business is serious, future-focused, and ready to work with regulators, not against them.
How We’re Helping
At Priority Crypto, we specialise in placing top talent across the crypto and Web3 space. Whether you’re building your team to meet new compliance demands or looking for your next challenge in the industry, we’re here to help.
We understand the pressures you’re facing because we talk to businesses like yours every day. Our job isn’t just to fill roles, it’s to build teams that are future-proof, compliant, and competitive.
So, if this upcoming rule change has left you wondering where to start, get in touch. We’ll connect you with the people who can take your business to the next level.
Let’s Get Ahead of the Curve
Regulation is coming. There’s no point fighting it. But with the right people on your team, it doesn’t have to be a roadblock. It can be a springboard.
Want to talk crypto recruitment? Reach out to our team today or check out our latest roles in the Web3 space.
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