According to the source, the Trump administration is advocating for U.S. participation in the OECD Crypto-Asset Reporting Framework (CARF) to enable the IRS to better identify Americans’ foreign crypto holdings; source: the source. CARF requires virtual asset service providers, exchanges, and custodians in participating jurisdictions to automatically report customers’ crypto account information to local tax authorities for exchange with partner countries under a common standard; source: OECD. OECD states that 48 jurisdictions have committed to implement CARF by 2027, including the EU and UK, expanding reporting coverage across major trading venues; source: OECD. For traders, U.S. alignment with CARF would raise KYC and cross-border reporting requirements for U.S. persons on offshore platforms, reduce opacity around cross-exchange flows, and narrow avenues for untaxed arbitrage, while the IRS has already finalized domestic digital asset broker reporting via Form 1099-DA beginning with 2025 transactions reported in 2026; sources: OECD and IRS.

According to the source, the UK tax authority HM Revenue & Customs is intensifying compliance outreach to crypto investors over unpaid gains, and HMRC classifies most cryptoasset disposals as taxable capital gains that must be reported via Self Assessment. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual The UK reduced the Capital Gains Tax annual exempt amount to £3,000 from April 2024, bringing more BTC and ETH profits into scope for tax reporting and payment. Source: https://www.gov.uk/capital-gains-tax/allowances HMRC can obtain user and transaction data from crypto exchanges using statutory information powers and data-gathering notices, while UK crypto firms must comply with the crypto Travel Rule, enhancing traceability of transfers. Source: https://www.gov.uk/guidance/checks-what-hmrc-can-do; https://www.fca.org.uk/firms/cryptoassets/travel-rule Late filing and late payment trigger penalties and interest, increasing effective trading costs for UK-based crypto traders if gains are unreported or paid late. Source: https://www.gov.uk/self-assessment-tax-returns/penalties; https://www.gov.uk/government/publications/interest-rates-for-late-and-early-payments/interest-rates-for-late-and-early-payments For trade planning, HMRC applies pooling and the same-day and 30-day matching rules to cryptoassets, affecting tax-loss harvesting and cost basis calculations, so accurate transaction records are essential. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual; https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg51500 Cross-border data visibility is set to expand as jurisdictions implement the OECD Crypto-Asset Reporting Framework, to which the UK has committed, increasing compliance risks for offshore holdings. Source: https://www.oecd.org/tax/exchange-of-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.htm