‍Abstract

This article summarizes key tax and regulatory developments in the global crypto assets industry during the first half of Jan 2026.

On the tax front, the UK has implemented domestic rules aligned with the OECD’s Crypto-Asset Reporting Framework (CARF), effective January 1, 2026. The framework requires reporting crypto-asset service providers (RCASPs) to conduct tax-residency due diligence and report, on an annual basis, reportable crypto-asset transactions and account information to HM Revenue & Customs (HMRC), supporting the automatic international exchange of tax information. Separately, the EU’s new digital asset tax reporting directive (DAC8) took effect on January 1, requiring crypto-asset service providers to collect and report reportable transaction data for EU tax-resident users; the first reportable fiscal year is 2026, and the first automatic exchanges between member states are due by September 30, 2027.

On the supervision front, key global regulatory developments include India's central bank advocating for CBDCs over private stablecoins to mitigate financial risks, the Cayman Islands granting a conditional license to Crypto.com, and the UK's FCA planning to launch a new crypto licensing regime in 2027, with an application window expected to open in September 2026. Additionally, Dubai banned privacy tokens in the DIFC and tightened stablecoin rules, while in the U.S., a discussion draft of the Digital Asset Market Clarity Act was released ahead of a committee vote, though it faces opposition from major industry participants such as Coinbase, which argues the bill would unduly restrict the crypto sector.

Part I Tax

1. UK Joins Global Push for Crypto Tax Transparency with CARF Implementation (1.8)

The UK has enacted a new tax transparency regime for crypto assets, effective January 1, 2026. Under the OECD’s Crypto-Asset Reporting Framework (CARF), reporting crypto-asset service providers (RCASPs) must conduct tax-residency due diligence on customers and report, annually, reportable crypto-asset transactions and account information to HM Revenue & Customs (HMRC). Click here to read the original article

2. EU Kicks off 2026 with New Digital Asset Tax Reporting Rules（DAC8） (1.8）

The European Union’s new digital asset tax reporting directive (DAC8) took effect on January 1, requiring reporting crypto-asset service providers (RCASPs) to collect and report reportable transaction data for EU tax-resident users to national tax authorities. The first reportable fiscal year is 2026, and the first automatic exchanges between member states are due by September 30, 2027. Click here to read the original article

Part II Supervision

1.India’s RBI Warns that CBDCs Must Replace Stablecoins to Prevent Financial Chaos(1.2)

The Reserve Bank of India (RBI) has issued a formal warning in its latest Financial Stability Report, stating that the increasing adoption of privately-issued stablecoins poses a threat to financial stability and could undermine trust in money. It argues that central bank digital currencies (CBDCs) should be prioritized globally to avoid systemic risks. Click here to read the original article

2. Cayman Grants Crypto.com Conditional VASP Licence (1.5)

Crypto.com revealed that the Cayman Islands Monetary Authority had granted it a conditional Virtual Asset Service Provider licence, as one of the first digital asset firms to receive this approval in the Cayman Islands. Click here to read the original article

3. UK’s FCA Sets September 2026 Deadline for New Crypto Licensing Era (1.9)

Britain’s Financial Conduct Authority (FCA) plans to launch a new crypto authorization regime in 2027 and expects to open the application window in September 2026. Under the new regime, firms must secure formal authorization for their digital asset businesses to continue operating, with no automatic conversion from existing anti-money laundering registrations. Click here to read the original article

4. Dubai Bans Privacy Token Use On Exchanges, Tightens Stablecoin Rules In Crypto Reset (1.12)

The Dubai Financial Services Authority (DFSA) has banned privacy tokens in the Dubai International Financial Centre (DIFC)—including their trading, promotion, and related derivatives activity—citing anti-money laundering (AML) and sanctions compliance risks. The ban forms part of a sweeping update to the DIFC’s crypto rules that also shifts token-approval responsibility onto firms and tightens the definition of stablecoins. Click here to read the original article

5. U.S. Senate Releases Draft of Digital Asset Market Clarity Act Ahead of Key Committee Vote （1.13）

The U.S. Senate has taken a major step toward comprehensive crypto regulation with the release of a discussion draft of the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. The legislation was scheduled for a critical Senate Banking Committee markup vote on January 15, 2026, but the vote has been postponed. Click here to read the original article

6. Coinbase Says No to CLARITY Act, Citing Crypto Restrictions（1.14）

Coinbase CEO Brian Armstrong said the exchange cannot support the Senate Banking Committee’s latest draft of the CLARITY Act, warning that the bill, as written, would leave the U.S. crypto industry worse off than the current regulatory status quo. Armstrong cited several concerns, including what he described as a de facto ban on tokenized equities, new restrictions on decentralized finance that could grant the government broad access to users’ financial data, and provisions that weaken the Commodity Futures Trading Commission while expanding the Securities and Exchange Commission’s authority. Click here to read the original article

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