HMRC issues new reporting guidelines for UK crypto asset service providers
David Walker · Posted on: May 29th 2025 · read
The UK tax authority, His Majesty’s Revenue and Customs (HMRC) has published two guidance notes for businesses providing crypto asset services in the United Kingdom. This guidance helps service providers to determine whether they are required to report under the OECD's Crypto Asset Reporting Framework (CARF) and defines what their responsibilities would be in collecting data and reporting it to HMRC.
The first guidance note of 14 May 2025 provides that all UK-based reporting crypto asset service providers (RCASPs) must report to HMRC. A business is considered a RCASP if it either transacts crypto assets on behalf of users or provides a means for users to transact crypto assets, i.e. exchanges, brokers or dealers. The guidance also explains the concepts of "crypto assets" and "UK-based".
The first guidance note of 14 May 2025 provides that all UK-based reporting crypto asset service providers (RCASPs) must report to HMRC.
A business is considered a RCASP if it either transacts crypto assets on behalf of users or provides a means for users to transact crypto assets, i.e. exchanges, brokers or dealers. The guidance also explains the concepts of "crypto assets" and "UK-based".
A UK-based RCASP must collect information about its users and their transactions from 1 January 2026. The details of information to be collected is available here. The RCASP must also submit a report to HMRC – the first report will be due by 31 May 2027.
The second piece of guidance, also dated 14 May 2025, provides the manner of reporting as follows:
- RCASP must collect details of all users, but must report only on users who are tax residents in the United Kingdom or another country that is signed up to CARF rules;
- the first report will be due by 31 May 2027, giving details for 1 January 2026 to 31 December 2026; and
- the report must be submitted online in an XML schema.
The guidance notes provide for a penalty of GBP 300 per user for failure to comply with the rules.
"New HMRC rules mandate UK crypto service providers to report client transactions under CARF from January 2026, a development underscored by FCA data showing UK crypto ownership tripled to 12% of adults (2021-2024)."
David Walker, Managing Partner, MHA Caymans
The content in this article is in collaboration with the IBFD organisation. No part of this information may be reproduced or distributed without permission of IBFD. Disclaimer: IBFD will not be liable for any damages arising from the use of this information.
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