New Crypto Tax Rules Hit 40+ Countries as HMRC Targets Exchanges

A sweeping crackdown on crypto tax evasion took effect Thursday as the UK and 47 other countries launched mandatory transaction reporting for digital assets under new OECD-developed rules.

According to Financial Times, major crypto exchanges must now collect complete transaction records for UK customers, including purchase prices, sale amounts, and profits, while simultaneously reporting users’ tax residency details to HM Revenue & Customs.

The UK sits among the first wave implementing the Cryptoasset Reporting Framework, with HMRC set to automatically share exchange-supplied data with participating tax authorities starting in 2027.

All EU countries, the Channel Islands, Brazil, the Cayman Islands, and South Africa will receive information under the system.

Ending Crypto Anonymity Across Borders

The unprecedented global coordination marks a fundamental shift in crypto oversight.

Seventy-five countries have committed to implementing CARF rules, with crypto hubs including the UAE, Hong Kong, Singapore, and Switzerland scheduled to begin enforcement in 2027 and start exchanging information in 2028, as per FT.

The United States will implement the framework in 2028 and begin exchanges in 2029.

“This is the beginning of the end for crypto investors who thought they could invest and gain from crypto in secrecy from tax and other law enforcement agencies,” said Andrew Park, tax investigations partner at Price Bailey.

The enforcement push follows years of preparation, with HMRC tripling the number of compliance letters sent to suspected tax evaders. The agency sent 65,000 notices in the 2024-25 tax year, compared to 27,700 the previous year.

For the first time, this year’s self-assessment tax return form includes a dedicated section for declaring crypto gains and losses.

Despite heightened scrutiny, retail behavior suggests continued confidence in digital assets.

“In the weeks leading up to the Budget, GBP deposits on CoinJar were 16% higher than withdrawals, which suggests people are taking a longer-term view rather than pulling back,” Asher Tan, CEO and co-founder of FCA-registered exchange CoinJar, told Cryptonews.

“This push toward clearer tax reporting standards should provide greater clarity for everyday users, and this makes using compliant platforms even more important.“

Diverging Tax Strategies Reshape Global Landscape

While enforcement tightens, tax treatment varies sharply across countries.

For instance, Japan’s 2026 tax reform implements a flat 20% rate on crypto gains from “specified crypto assets” handled by registered financial businesses, replacing the current regime, under which gains are subject to up to 55% taxation.

The reform also introduces a three-year loss carryover deduction and permits investment trusts incorporating cryptocurrencies.