taxation

Crypto journalist Eleanor Terrett posted on the X platform, stating that although the CLARITY Act has been stalled in the U.S. Senate, the House of Representatives will continue to advance several cryptocurrency-related legislations today. At 10 AM Eastern Time, the House Ways and Means Committee will review and amend a cryptocurrency tax bill.Meanwhile, the House Financial Services Committee will also begin reviewing several bills, including the House Strategic Bitcoin Reserve Act proposed earlier this year by Congressman Nick Begich.

Aave founder Stani Kulechov stated that he has submitted comments to the UK HM Revenue and Customs, suggesting improvements to the tax positioning of cryptocurrency collateralized loans and stablecoins.At the same time, he advocates for allowing stablecoins to be included in UK Individual Savings Accounts (ISA) in the future, giving stablecoin lending users the opportunity to enjoy relevant tax benefits.

According to "Digital Assets," the number of signatures for the petition in the South Korean National Assembly to postpone the taxation of virtual assets by 2 years has exceeded 32,000. The threshold for the National Assembly petition is 50,000 signatures, and if an additional 18,000 signatures are collected before September 20, the petition will be formally submitted for review by the relevant standing committee.The reason for the petition is that taxing digital assets will lead to a significant decline in exchange revenues, which in turn will result in a decrease in corporate tax revenue. Currently, the government insists on implementing the taxation normally starting in January 2027, while the People Power Party opposes it, citing reasons such as inadequate infrastructure.

According to Cointelegraph, the Financial Services Agency (FSA) of Japan proposed in its 2026 tax reform request to exempt trust-based stablecoins from mandatory tax reporting obligations starting from the fiscal year 2027. The agency suggested that trust-based stablecoins do not need to submit beneficiary trust reports and calculation statements that include the names and income of beneficiaries.The reason given by the FSA is that trust-based stablecoins circulate among a large number of users, with frequent and numerous transactions, and holding these assets does not generate income. If the proposal receives legislative approval, the relevant tax exemption measures will take effect from April 1, 2027.This move is part of Japan's efforts to incorporate cryptocurrency assets into the regulatory framework for traditional financial assets. In July of this year, the Japanese Diet passed an amendment that classifies cryptocurrency assets as financial assets under the Financial Instruments and Exchange Act, a direction first signaled by Finance Minister Shunichi Suzuki in January.

According to Digitalasset, the South Korean National Tax Service plans to introduce commercial tracking programs used by domestic and foreign investigative agencies to track and analyze the flow of funds between digital asset wallets, in order to close the tax loophole for virtual assets in personal wallets.The South Korean government stated that digital assets held in personal wallets and overseas exchanges are subject to taxation as long as there is income generated from transfers or loans. The overseas exchanges will respond through the Crypto Asset Automatic Information Exchange Framework (CARF).

According to CoinDesk, the UK's HM Revenue and Customs (HMRC) has disclosed cryptocurrency earnings data separately for the first time in personal income tax returns. In the 2024-2025 fiscal year, a total of 240 taxpayers reported capital gains from cryptocurrencies exceeding £1 million (approximately $1.36 million), while 17,600 individuals reported taxable gains from cryptocurrency disposals, totaling £1.38 billion (approximately $1.87 billion), with an average of about £78,000 per person, of which nearly 90% were male.HMRC stated that it has begun implementing the OECD's cryptocurrency reporting framework, which requires cryptocurrency service providers to submit customer data to tax authorities, with the expectation of receiving relevant data starting in 2027 to cross-check taxpayer reporting information. In addition, HMRC mentioned that in the 2024-25 fiscal year, an additional £168 million (approximately $228.2 million) in capital gains tax was collected through compliance and educational activities.

Chainalysis' latest report shows that the potential taxable on-chain cryptocurrency activity globally will reach at least $457 billion by 2025, while the OECD's Crypto Asset Reporting Framework (CARF) covers only about 14% of the on-chain taxable activities. The report estimates that the United States contributes approximately $112.6 billion, with North America leading at $134.6 billion, followed closely by the European Union at $125.1 billion.This estimate includes income generated from realized gains, mining, staking, and lending, as well as payments denominated in crypto assets, but does not include trading activities within centralized exchanges. The CARF will start data collection on January 1, 2026, across 48 jurisdictions, including the UK and EU, requiring eligible crypto platforms to collect customer and tax resident information and report transaction data to domestic tax authorities for cross-border sharing.The report points out that the CARF's design, centered around crypto intermediaries, is the main reason for the coverage gap. Colby Mangels, a former OECD advisor involved in the development of the CARF, stated that the framework is designed around intermediaries that conduct crypto transactions as their business, which leaves a significant amount of decentralized finance activities outside the reporting scope due to the lack of centralized operators or custodial relationships. Mangels noted that tax authorities are focusing on the progress of anti-money laundering regulations, including when DeFi platforms or their operators should be considered regulated crypto service providers.

According to Digital Asset, Park Soo-young, a member of the Korean National Power Party, criticized the government's plan to tax virtual asset gains, stating that it is "a threat of a tax bomb if one does not invest in the domestic stock market," and demanded an immediate withdrawal.Member Park Soo-young stated on her YouTube channel: "I hope this punitive tax plan that puts 13 million digital asset users in danger can be withdrawn immediately." She added, "This does not mean that people will invest in domestic stocks; on the contrary, it will only accelerate the outflow of national wealth." She cited that approximately 124 trillion won flowed into overseas digital asset exchanges from January to September last year.

According to MBN, South Korea's People Power Party member Jeong Seong-guk plans to propose a bill to postpone the implementation date for taxing virtual asset income by three years, from January 1, 2027, to January 1, 2030. The member pointed out that by delaying the implementation date until a comprehensive review of related systems, including the taxation of virtual assets, is completed, a safeguard can be established to enhance taxpayer expectations and prevent system chaos.According to current regulations, starting from January 1 of next year, income generated from the transfer or lending of virtual assets will be classified as "other income" and will be subject to income tax. Therefore, the portion of annual profits exceeding 2.5 million won will be taxed at a rate of 22%, which includes 20% for other income tax and 2% for local income tax. Amid recent stock market turmoil and soaring real estate prices triggering public attacks on the government and ruling party, the People Power Party seems to be trying to gain public support by actively proposing legislation aimed at protecting the interests of virtual asset market investors. The People Power Party has consistently opposed the government, advocating for the abolition of this tax.

The State Taxation Administration of China responded to the recent discussions on taxing insurance income in Hong Kong, stating that Chinese tax residents are required to fulfill their tax obligations on global income according to the law, and that overseas insurance income also falls within the scope of taxable income. This is not a new policy and is not specifically aimed at the Hong Kong insurance market. The tax authority indicated that residents must declare and pay taxes on overseas insurance income and other investment income in accordance with the law, and the relevant rules treat overseas income from different countries and regions equally.Yesterday, Caixin reported that with the normalization of CRS information exchange, Chinese tax authorities can now fully obtain data on dividends and cash value from overseas insurance policies, gradually filling the gaps in tax administration. Currently, the taxation of insurance income from overseas sources has been initiated.

According to South Korean media MK, the annual tax reform plan previously announced by the South Korean government does not include a proposal to further postpone the taxation of virtual assets (cryptocurrencies), which means that the current legal schedule for taxation in 2027 is likely to remain.According to the current South Korean Income Tax Act, starting in 2027, income from the transfer and lending of virtual assets will be classified as "other income," and investors will enjoy a tax-free allowance of 2.5 million Korean won per year. Any amount exceeding this will be subject to a 20% income tax, along with an additional 10% local income tax, resulting in a combined tax rate of 22%.

According to Edaily, the South Korean Ministry of Economy and Finance has finalized the "2026 Tax Reform Bill," which does not include a clause for delaying the taxation of virtual assets. If passed by the National Assembly, profits from virtual asset transactions exceeding 2.5 million won will be taxed at a rate of 22%, with the first declaration due in May 2028.This taxation has been postponed three times previously, and the opposition party has proposed a repeal bill, facing significant opposition amid the current market downturn.

According to The Nation Online, the Nigerian Tax Authority has released the "Virtual Asset Taxation Guidelines," officially incorporating cryptocurrencies, stablecoins, NFTs, and other blockchain digital assets into the country's tax system. The guidelines were published on July 31 and provide the first detailed framework for taxing the income from assets such as cryptocurrencies, stablecoins, governance tokens, and NFTs.The guidelines stipulate that income generated from the disposal, exchange, or transfer of virtual assets must be taxed according to Nigerian tax law, and income from blockchain activities such as mining, staking, validating, airdrops, and token rewards is also subject to taxation. Virtual assets must be valued at the market price of exchange platforms recognized by the tax authority. Individuals and businesses must maintain complete transaction records, and virtual asset service providers must register for taxation and report large or suspicious transactions. The SEC continues to regulate securities-type virtual assets, while the tax authority is responsible for tax management. The guidelines do not set a separate tax rate for cryptocurrencies but apply existing tax law provisions. The guidelines follow President Bola Tinubu's executive order on establishing a coordinated regulatory framework for virtual assets.

According to DigitalAsset, South Korean Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol stated at a plenary meeting of the National Assembly's Finance and Economy Planning Committee that the taxation of digital assets will be implemented as planned on January 1, 2027, and the system may be supplemented and improved if necessary thereafter.According to the current income tax law, the portion of income from digital asset transactions exceeding 2.5 million won will be subject to a 20% tax rate (including local taxes up to 22%). The implementation was originally scheduled for 2022 but has been postponed three times due to insufficient infrastructure. In response to concerns raised by People Power Party member Kim Sang-hoon regarding the non-application of loss carryforward deductions potentially leading to a decline in domestic demand and capital outflow, Koo stated that stock investments also do not allow for loss carryforwards, and the taxation can be reviewed and improved at any time. Regarding the introduction of a capital gains tax similar to that in overseas markets, Koo mentioned that a comprehensive and systematic consideration of the overall capital market is necessary.

According to South Korea's Chosun Ilbo, the National Tax Service of South Korea is accelerating preparations for the taxation of virtual assets by 2027, including the establishment of a new Digital Asset Comprehensive Division and the promotion of the construction of a comprehensive analysis system for virtual assets. However, the National Assembly has not yet scheduled the discussion on the petition signed by 50,000 people to abolish the virtual asset tax, and discussions have stalled.Under the current tax system, investment income from virtual assets is taxed at 22% after a deduction of 2.5 million won, while stock investors do not pay capital gains tax when buying and selling stocks on the exchange, and losses from virtual assets cannot be carried over to the next year, which has been criticized as unfair. Related discussions are expected to advance after the government's tax reform plan is announced at the end of July.

The South African Revenue Service (SARS) recently released the "Draft Guidelines on Taxation of Crypto Assets," seeking public input on how South African tax residents should declare and handle income related to crypto assets, with a feedback deadline of August 31.The guidelines focus on the provisions in tax law that are most closely related to crypto assets and do not cover all applicable sections. Some provisions, although not explicitly mentioning crypto assets, are also applicable to related trading activities.The guidelines state that South Africa's income tax system is residency-based. With specific exceptions, South African tax residents must pay tax on their worldwide income, including income and capital gains from crypto assets listed on foreign exchanges; non-residents may also have tax obligations if their income source is South Africa or if the disposed assets meet the relevant provisions.