Short answer: yes, and more than ever. As of January 2026, crypto exchanges in 52+ countries are automatically reporting your transactions to tax authorities. Here's exactly what they see, country by country.
52+
Countries collecting
crypto data in 2026
65k+
HMRC nudge letters
sent in 2024/25
2027
First international
data exchange
What Changed on 1 January 2026?
Two frameworks kicked in simultaneously, creating the biggest shift in crypto tax enforcement since Bitcoin was invented:
CARFCrypto-Asset Reporting Framework
OECD-designed global standard. 52+ countries (including the UK) now require exchanges to collect user identity, tax residence, and full transaction data — then report it to national tax authorities annually. Think of it as CRS (the bank reporting system) but for crypto.
DAC8EU Directive on Administrative Cooperation
The EU’s implementation of CARF across all 27 member states. Goes further than CARF in some areas — platforms that can’t collect user TIN data must eventually block trading access. Has extraterritorial reach: even non-EU platforms serving EU residents must comply.
1099-DAUS Broker Reporting (IRS)
US exchanges started reporting gross proceeds in 2025. From 2026, they’ll also report your cost basis. The IRS will be able to see exactly what you bought, what you sold, and what you gained — without you telling them.
The Timeline: How We Got Here
This didn't happen overnight. Tax authorities have been building toward this for years.
2017–2019
📋 HMRC requests customer data from Coinbase, eToro, CEX.io
2019
🔍 ATO launches crypto data-matching program with exchanges
2020–2023
⚖️ IRS issues John Doe Summons to Coinbase, Kraken, Poloniex
2023
🌍 OECD publishes CARF. 48+ countries commit to adoption
2024
🔨 First criminal prosecution for crypto tax evasion (US)
Jan 2025
📄 1099-DA reporting begins in the US (gross proceeds)
2024/25
✉️ HMRC sends 65,000+ nudge letters to crypto holders
🚨
1 Jan 2026
🚨 CARF & DAC8 go live. Exchanges start collecting data in 52+ countries
2026
📊 US 1099-DA adds cost basis reporting
May 2027
🇬🇧 UK files first CARF reports with HMRC
Sep 2027
🇪🇺 EU exchanges DAC8 data across 27 member states
2027–2028
🌐 International automatic data exchange begins globally
What Does Your Tax Authority See?
Select your country for the full breakdown of what data is being collected, who's reporting it, and what penalties apply.
Current Status
Live — collecting data since 1 January 2026
First Reports Due
31 May 2027
What HMRC Will Receive About You
•Your full name, address, date of birth
•National Insurance number or UTR
•Tax residence country
•Every crypto-to-fiat and crypto-to-crypto transaction
•Transfers to self-custody wallets (with value)
•Aggregate transaction values by crypto asset type
Who's Reporting on You
UK-registered exchanges, custodial wallet providers, and some DeFi platforms with a controlling entity
💡
HMRC has had exchange data since 2017. CARF just automates what they were already doing manually.
Penalties for Non-Compliance
£300 fine for non-compliance with data requests. Late filing penalties start at £100 and escalate. Undeclared gains can attract penalties up to 100% of tax owed — more if offshore assets are involved.
What They've Already Done
HMRC sent over 65,000 ‘nudge letters’ to suspected non-filers in 2024/25 — double the previous year. They’ve also issued bulk data requests to Coinbase, eToro, and CEX.io for UK customer data going back to 2017.
✅ The Good News
HMRC’s Cryptoasset Disclosure Service (CDS) lets you come forward voluntarily. Penalties can be as low as 10% of tax owed if you disclose before HMRC contacts you. After they contact you, penalties jump significantly.
“But I Use DeFi / Self-Custody...”
Pure self-custody and fully decentralised protocols are harder for authorities to see directly. But here's the reality:
→If you ever bought or sold through a centralised exchange, they have your data — and they’re reporting it.
→Under DAC8, withdrawals to self-custody wallets are specifically reportable. The exchange logs the value and destination.
→Blockchain analytics firms like Chainalysis can link wallet addresses to real identities. The IRS, HMRC, and ATO all use them.
→The IRS has stated that tax obligations apply regardless of whether you use a DEX, CEX, or hardware wallet.
→Even if your DeFi activity isn’t directly reported, any on-ramp or off-ramp to fiat creates a paper trail.
Self-custody protects your keys. It doesn't protect you from tax obligations.
Get Ahead of the Reporting
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This information is for general guidance only, not tax or legal advice. Regulatory details are current as of February 2026 but are subject to change. Consult a qualified professional for your specific situation.