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

Core Insights - A global crackdown on crypto tax evasion has commenced, with the UK and 47 other countries implementing mandatory transaction reporting for digital assets under new OECD rules [1][2][3] - The Cryptoasset Reporting Framework (CARF) will see automatic data sharing among tax authorities starting in 2027, affecting numerous jurisdictions including all EU countries and major crypto hubs [2][3] Group 1: Regulatory Changes - Major crypto exchanges are now required to collect comprehensive transaction records for UK customers, including purchase prices, sale amounts, and profits, while reporting users' tax residency to HM Revenue & Customs [1] - Seventy-five countries have committed to implementing CARF rules, with enforcement beginning in 2027 for crypto hubs like the UAE, Hong Kong, Singapore, and Switzerland [3] - The United States plans to implement the CARF framework in 2028, with information exchanges starting in 2029 [3] Group 2: Enforcement and Compliance - HMRC has significantly increased its compliance efforts, sending 65,000 notices to suspected tax evaders in the 2024-25 tax year, up from 27,700 the previous year [4] - A new section for declaring crypto gains and losses has been added to this year's self-assessment tax return form, indicating a shift towards greater transparency [5] Group 3: Market Behavior and Tax Strategies - Despite increased scrutiny, retail confidence in digital assets remains strong, as evidenced by a 16% increase in GBP deposits on CoinJar compared to withdrawals leading up to the Budget [5] - Tax treatment for crypto varies globally, with Japan's upcoming 2026 tax reform introducing a flat 20% rate on gains from specified crypto assets, replacing a system that could tax gains up to 55% [6][7]