Key points include:
➡️ Reporting Obligation: reporting cryptoasset service providers (RCASPs) must routinely report users’ cryptoasset accounts and transactions to HMRC.
➡️ Identity & Account Data Collection: Firms are required to collect and submit customer identity details, account information, tax residency, and transaction records.
➡️ Standardised Information Exchange: Reported data will be exchanged among CRS participating jurisdictions, replacing ad-hoc information requests.
➡️ EU Implementation via DAC8: All EU Member States began collecting cryptoasset data under DAC8 on 1 January 2026, with exchanges starting by September 2027.
➡️ Enforcement & Penalties: In the UK, platforms submitting inaccurate, incomplete or unverified reports may face fines with further penalties for failures in due diligence, record-keeping, or timely reporting.
✅ RCASPs should ensure reporting systems, data collection processes, and governance arrangements meet CARF requirements.