Cryptoasset Reporting Framework and Common Reporting Standard
Read the full outcome
Detail of outcome
The government ran a consultation between 6 March 2024 to 29 May 2024. This consultation allowed cryptoasset services providers, financial institutions, their advisers, and other businesses associated with the crypto industry and financial industry to engage with HMRC on the implementation of the Cryptoasset Reporting Framework (CARF) and the amendments to the Common Reporting Standard (CRS).
The government received 33 written responses from stakeholders and held a number of meetings. This document provides a summary of the responses. It sets out the government’s responses to the questions raised in the consultation and sets out the next steps on the implementation of the rules including further engagement with industry.
More information will be provided to help industry and advisers prepare for implementation:
- draft regulations for Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations 2025 and The International Tax Compliance (Amendment) Regulations 2025 - for the implementation of these measures have been published for comment on GOV.UK and will be discussed with the industry
- draft guidance will be prepared and HMRC will work with stakeholders to ensure this covers the key questions they have raised and other queries that may arise
On the question of extending the OECD rules to cover domestic reporting:
- the government has decided to extend the CARF to cover reporting on UK customers by UK businesses – this will be brought in at the same time as the implementation dates of the CARF
- regarding the benefits and drawbacks of extending CRS reporting to cover UK customers of UK businesses, the government will continue to examine the issues raised
Original consultation
Consultation description
OECD Automatic Exchange of Information (AEOI) agreements are a key method by which the UK tackles offshore tax evasion. The Cryptoasset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS2) is the latest AEOI package that ensures we close gaps in existing transparency rules created by developments in fintech.
The CARF is a wholly new standard that addresses tax non-compliance using cryptoassets and CRS2 is an update to the existing framework on offshore accounts. Following public consultation at the OECD, the rules and commentary for the package has been agreed but the practical implementation is not prescribed in detail.
This consultation sets out the details of the rules and invites views on the UK’s proposed implementation. It also seeks views on the potential benefits and drawbacks of extending the CARF/CRS international standards to require UK reporting entities to include information on UK residents.
Documents
Updates to this page
Published 6 March 2024Last updated 30 October 2024 + show all updates
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Published outcome, including summary of responses.
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First published.