In the future, cryptocurrency platforms will have to provide customer data to HMRC. Investors in cryptocurrencies will find it significantly harder to avoid paying capital gains tax on cryptocurrency profits, as global tax authorities will be exchanging data. This means that cryptocurrency platforms and cryptocurrency service providers, known as RCASPs, will have to provide tax authorities with data about investors. Subsequently, this data will be used to identify cases of non-compliance. In the case of reporting procedures, RCASPs will need to obtain self-certification from individual cryptocurrency users, which requires detailed information about the user, including, but not limited to, their legal name and jurisdiction. If the self-certification fails, for example due to inconsistencies with other information that the RCASP holds about the user, RCASPs must obtain a valid self-certification or justification and documentation before providing services facilitating transactions for the cryptocurrency user.The government proposes a CARF reporting deadline of May 31 for the previous calendar year to align with CRS. The rules will come into effect no earlier than 2026 for data exchange in 2027. The government proposes a penalty system for non-compliance of up to £5,000 and subsequent daily fines of £600 for persistent breaches of regulations.