UK Tax Authority Expands Crypto Surveillance Under OECD Framework

Her Majesty's Revenue and Customs (HMRC) has intensified its crackdown on cryptocurrency tax evasion, requiring all major exchanges servicing UK users to disclose comprehensive trading records. The mandate includes acquisition costs, sale proceeds, profit calculations, and taxpayer residency status—marking one of the most aggressive enforcement actions under the OECD's Cryptoasset Reporting Framework (CARF).

Forty-eight nations including the UK are implementing CARF in 2024, with over 75 jurisdictions committed to eventual adoption. Financial hubs like Hong Kong and Singapore will phase in reporting by 2027, while the US begins data collection in 2028. "The illusion of tax-free crypto profits is collapsing," noted Price Bailey investigator Andrew Park, emphasizing automated data sharing between tax authorities starting in 2027.

The policy establishes real-time information pipelines between HMRC and global counterparts, fundamentally altering compliance expectations for retail and institutional traders alike. Exchanges failing to provide transaction histories, wallet addresses, and residency verification now face escalating penalties as international tax transparency mechanisms take effect.