The European Union's DAC8 rules and the UK's Cryptoasset Reporting Framework (CARF) both began applying on January 1, 2026, forcing crypto-asset service providers on both sides of the Channel to start collecting detailed transaction data for tax authorities. Under the new regimes, exchanges must gather information on reportable transactions involving EU residents and certain foreign users, and if a user refuses to provide a Tax Identification Number (TIN), the platform is legally required to block withdrawals and cut off flows.
What the rules require
DAC8 applies to crypto-asset service providers operating in the EU. They must collect data on reportable transactions involving EU residents, including users living in the provider's own Member State. The provider's legal entity determines where the account is reported and which authority receives the information first. Under DAC8, EU countries share reports on residents using providers based elsewhere in the bloc.
In the UK, providers collect identifying details for all users but only include some foreign users in their annual reports. UK outward exchange requires that the foreign jurisdiction have an agreement or arrangement in effect with the UK and appear on the applicable UK reportable-jurisdiction list.
The reporting chain
The process has three stages. First, the provider collects information throughout 2026. Then it sends an annual report to the relevant authority. Finally, the authority may route the information to the user's country of tax residence. Reports received by authorities are standardized and compressed; HMRC requires user details plus a summary of transactions. DAC8 specifies annual quantitative information broken down by reportable cryptoasset and transaction category.
Deadlines and next steps
The UK's domestic provider deadline for the first report is between January 1 and May 31, 2027, covering activity from January 1 to December 31, 2026. The EU separates provider filing deadlines from authority exchange deadlines; September 30, 2027 is the common deadline for EU authorities to exchange information for 2026 about nonresident users. UK international exchange remains conditional after the May 31 filing deadline, requiring both an operative agreement and inclusion on the UK list.
The OECD maintains a register of exchange relationships recording direction, legal basis, and applicable dates; some relationships can be nonreciprocal. That register will be the key to understanding which jurisdictions are actually sharing data and which aren't yet.
