Crypto Users: Get Ready for Big Changes in 2026

Starting January 1, 2026, crypto users in 48 places, like the UK and EU, will see the first real effects of the OECD's Crypto-Asset Reporting Framework (CARF). This framework will make crypto exchanges and platforms collect more details about users, check tax residency, and report balances and transactions yearly. Tax authorities will then share this data across borders. This change is huge. It means stricter rules for crypto businesses and users. Users can no longer assume that trading on overseas platforms will go unnoticed by tax agencies. Firms that adapt quickly will manage risk better and keep user trust. Those that delay might face regulatory and reputational issues.For crypto exchanges, this isn't just a small update. They need to integrate CARF into their existing processes. This includes redesigning onboarding to capture tax residency data and upgrading reporting systems. It's a big task that requires new governance frameworks, staff training, and better team coordination. Users, on the other hand, should expect more audits. CARF doesn't create new taxes but makes existing rules easier to enforce. The UK's tax authority will receive standardized data directly from exchanges, making it easier to spot mismatches. Common issues include offshore exchange activity, small disposals, and misreported DeFi or NFT transactions. Users are advised to address any unresolved issues now while voluntary disclosure is still an option.