Starting in early 2026, crypto-asset service providers (such as exchanges and custodians) across the European Union and the United Kingdom will be required to report users’ transaction data to tax authorities under the Crypto‑Asset Reporting Framework (CARF).

Providers must collect and report user identity details, tax residency, taxpayer identification number, along with crypto-to-crypto trades, crypto-to-fiat exchanges and asset transfers.

The effective date for reporting is targeted at 1 January 2026.

The aim is to enhance tax transparency and address the challenges posed by digital-asset transactions that cross borders.