CARF, DeFi and Self-Custody Wallets: What Is Reported

Updated 17 October 2026

General information, not tax advice. We are not HMRC and are not affiliated with it. Check GOV.UK. Last checked against GOV.UK: 17 October 2026. Anything marked expected should be re-checked. Examples use made-up figures. This page contains no affiliate links. Do not enter personal identifiers (National Insurance number, UTR, name, date of birth) on this site.

Short answer: HMRC's CARF manual says a DeFi application or its underlying software is not itself a reporting cryptoasset service provider (RCASP); the people who create, own or operate it may be if they keep control or significant influence. And when a reportable user sends cryptoassets from a provider to an external wallet that is not known to belong to another provider, the provider must report that transfer separately, but does not send the wallet address to HMRC. It must collect and keep the address for at least five years.

What the manual says

  • DeFi (IEIM8000160): assessed consistently with FATF guidance. The technology is not the provider; individuals or entities that keep "control or significant influence" may be.
  • Transfers to external wallets (IEIM8000585): reported distinctly if the receiving wallet is not known to be associated with a VASP or financial institution, including where the provider is unsure. The report gives the type of asset, aggregate units and aggregate fair market value in fiat currency.
  • Addresses: not included in the report, but collected and retained for at least five years after the end of the reporting period so HMRC can ask later.
  • A transfer to a wallet known to belong to another provider is reported as a different type of transfer.
  • GOV.UK examples of providers include "a wallet app you use to exchange bitcoin" and a marketplace where you trade NFTs.

What this means in plain terms

  • A wallet you control yourself is not a provider, but a platform that sends coins to it will report the transfer out.
  • Using a DeFi protocol directly does not, by this manual, make the protocol a provider that reports your trades. Whether a given protocol has someone with control or influence is a case-by-case question.
  • None of this changes your own duty to report gains and income on your return: see the income and pooling pages below.

What the pages do not say

  • Which specific protocols, bridges or wallet apps count as providers.
  • What a provider does with the data on transfers when it later learns the wallet is yours.
  • Whether HMRC will treat a reported transfer out as a disposal (it is a transfer report, not a gain calculation).

Related

Crypto income: staking, airdrops, mining · What HMRC will receive · Several accounts checklist · Reconcile records before 31 May 2027

FAQ

Does HMRC see the balance in my private wallet? Nothing read says so. The manual describes reporting of transfers, not wallet balances.

Should I avoid external wallets? This is general information, not advice. Moving your own assets is not by itself a disposal, but see the disposal and pooling guidance.

What we could not verify

Uncertain. These points were not confirmed on the pages read. A re-check of the GOV.UK pages is planned for 1 December 2026.

  • Which DeFi protocols or wallet apps are RCASPs (case by case; FATF documents referenced in IEIM8000160 not read).
  • What providers do when they later learn an external wallet is yours.
  • IEIM8000560-8000584 (other transfer types) and the XML schema not read.
  • How HMRC will use transfer reports in practice.

Sources (official)

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