New tax reporting rules for crypto assets are taking effect in the United Kingdom and more than forty other countries, marking a major shift in how digital asset transactions are monitored by tax authorities.

The measures are designed to require crypto service providers to collect and report detailed information on users and transactions, bringing the sector into line with long-standing standards that already apply to traditional financial accounts.

The changes are based on a coordinated international framework that establishes common reporting and due-diligence obligations for platforms that facilitate trading, custody and transfers of crypto assets.

Under the rules, providers will be expected to identify customers, track transactions and submit data to national tax authorities, which will then exchange the information automatically with counterparts abroad.

In the UK, the government has said the new requirements will improve compliance and help ensure that individuals and businesses pay the correct amount of tax on gains made from crypto assets.

Officials have emphasised that the rules target intermediaries rather than individual users, reducing opportunities for evasion while providing greater clarity and consistency for the market.

The adoption of the framework by a broad group of countries reflects growing international concern that crypto assets have been used to obscure income and wealth.

With implementation now under way, tax authorities are preparing for the first rounds of reporting and data exchange, signalling a new era of oversight for a sector that has until recently operated with limited transparency.