tax

According to ZDNET, the Korean National Tax Service plans to select a private custody company in the first half of the year to manage seized virtual assets.Previously, the National Tax Service leaked mnemonic phrases when announcing the results of on-site searches of delinquents, leading to the theft of seized virtual assets twice. As a result, it was decided to shift from self-custody to entrusting professional custody companies. The National Tax Service will select custody companies based on criteria such as security requirements, company size, and whether they are insured according to the "Virtual Asset User Protection Act."The relevant work will be handled by the "Virtual Asset Management System Upgrade Task Force," which was established on the 11th of this month. This task force also plans to improve the comprehensive workflow manual for the entire process of seizure, custody, and sale, and to expand professional training. The National Tax Service is also preparing to establish a new "Digital Asset Management Division," which will be responsible for the seizure, custody, sale, and taxation of virtual assets. The head of the task force stated that this is a method mainly adopted by developed countries and will be implemented in the first half of the year after consulting with experts.

According to CoinDesk, South Korea's opposition party has proposed a bill to completely abolish the cryptocurrency income tax system that was scheduled to be implemented. The bill states that the current plan is to impose a 22% tax rate on cryptocurrency investment gains, while stock investment gains are not subject to income tax, which is deemed unfair to cryptocurrency investors. If the bill passes, South Korea's planned cryptocurrency tax collection scheme will be canceled.

According to The Block, South Korea's largest opposition party, the People Power Party, has submitted a bill to the National Assembly proposing to completely abolish the cryptocurrency capital gains tax plan set to take effect on January 1, 2027. The bill was primarily proposed by the party's representative Song Eon-seok.Under the current tax scheme, South Korea plans to impose a maximum tax rate of 22% on cryptocurrency trading gains exceeding 2.5 million won (approximately $1,665), consisting of a 20% national income tax and a 2% local tax. This tax plan has been postponed three times since 2022.The core argument of the bill is tax fairness. By the end of 2024, South Korea will have abolished income tax on gains from traditional financial investments such as stocks, and the proponents argue that it is unfair to tax cryptocurrency investors separately. The bill also cites the recent guidance from the U.S. Securities and Exchange Commission (SEC) that classifies most cryptocurrencies as commodities, arguing that cryptocurrencies should not be treated the same as securities.

According to The Block, South Korea's largest opposition party, the People Power Party, has submitted a bill to the National Assembly proposing the complete abolition of the cryptocurrency capital gains tax plan scheduled to take effect on January 1, 2027. The bill was primarily proposed by the party's representative in the National Assembly, Song Eon-seok.Under the current tax scheme, South Korea plans to impose a maximum tax rate of 22% on cryptocurrency trading gains exceeding 2.5 million won (approximately $1,665), consisting of a 20% national income tax and a 2% local tax. This tax plan has been postponed three times since 2022. The core argument of the bill is based on tax fairness.By the end of 2024, South Korea has abolished income tax on traditional financial investment gains such as stocks, and the proponents argue that taxing cryptocurrency investors separately is unfair. The bill also cites the recent guidance from the U.S. Securities and Exchange Commission (SEC) that classifies most cryptocurrencies as commodities, asserting that cryptocurrencies should not be treated the same as securities.

According to Jinshi reports, Pimco global economic advisor and former Federal Reserve Vice Chairman Clarida stated that the result of this Federal Reserve interest rate decision is "constructively dovish." He added that artificial intelligence supports economic demand, and to some extent, it, along with the BBB (Big Beautiful Bill) tax cuts, may offset the drag caused by rising oil prices.

According to Crypto Politan, Polish President Karol Nawrocki signed a new law earlier this month, officially incorporating the EU DAC8 directive into national legislation. Investors who fail to report cryptocurrency gains as required will face a punitive tax rate of up to 75%.DAC8 refers to the eighth amendment of the EU Directive on Administrative Cooperation in the Field of Direct Taxation, specifically targeting digital assets. It requires platforms such as exchanges, brokers, and wallet service providers to collect user and transaction data and report it to tax authorities. Tax departments in member countries will automatically share this information. The Polish National Revenue Administration (KAS) will use this to monitor the holdings and trading activities of cryptocurrency investors in the country.Local media estimate that about 3 million people in Poland hold cryptocurrencies, but currently, only about 1% of investors pay taxes in accordance with the law. Under current regulations, cryptocurrency trading income must be reported via the PIT-38 form by April 30, 2026, and is subject to a unified capital gains tax rate of 19%; mining and staking rewards are tax-exempt upon receipt, but taxes must be paid when converted to fiat currency.

According to market news, the Federal Tax Service of Russia announced that cryptocurrency miners will pay approximately 567 million rubles (about 7 million USD) in taxes to the state in 2025, of which 84 million rubles will be personal income tax and 483 million rubles will be corporate income tax. This figure is far lower than the previously expected 6 billion rubles (about 74 million USD).Officials pointed out that factors leading to the reduction in tax revenue include: rising electricity prices in Russia, high global hash rate of the Bitcoin network, a declining dollar to ruble exchange rate, falling Bitcoin prices, and limited legalization of mining. Russia legalized mining through legislation in 2024, requiring legal entities and individual entrepreneurs to register with the tax authorities, but currently, more than two-thirds of mining companies have not yet registered.

The Bitcoin Policy Institute warns that the U.S. Congress has only a few months left to pass a micro-exemption policy for small Bitcoin transactions. The organization has met with 19 congressional offices to promote this change.

Bitcoin Policy Institute calls for a revision of U.S. tax rules that treat all BTC payments as capital gains.

Coinbase executives have denied allegations of obstructing a tax-exempt policy for small Bitcoin transactions. Previously, Bitcoin advocates speculated on social media that Coinbase told lawmakers that Bitcoin is not widely used as a medium of exchange, and therefore does not require tax exemption. Coinbase CEO Brian Armstrong called the allegations "completely false" and stated that the company has been lobbying for the tax exemption for small Bitcoin transactions and will continue to do so.Coinbase's Chief Legal Officer and Chief Policy Officer also reiterated that they have "never lobbied against Bitcoin." Currently, U.S. lawmakers are considering providing tax exemptions for stablecoins pegged to the value of the dollar, but Bitcoin has not been included in the tax-exempt scope of the proposed Cryptocurrency Market Structure Bill (the CLARITY Act).

According to The Block, the UK's HM Revenue and Customs (HMRC) is exploring the procurement of blockchain forensic software and investigative support services to enhance its efforts against money laundering and tax fraud involving digital assets.A market research announcement released this week indicates that HMRC plans to procure licensing and investigative support services, covering functionalities such as blockchain data queries, cross-chain transaction tracking, attribution analysis, risk scoring, and data visualization. The proposed total contract value is approximately £3.42 million (about $4.6 million), for a duration of three years, with the possibility of extension until March 2030. The contract includes 55 annual software licenses and 20 corresponding investigative support hours, along with investigator training.Colby Mangels, former OECD advisor and Head of Global Government Solutions at Taxbit, stated that this move reflects the global government's emphasis on building compliance infrastructure for digital assets. Investigative work increasingly relies on cross-chain tracking, forensic analysis, and real-time blockchain data access, demonstrating the UK's commitment to setting an example in crypto compliance and regulatory transparency.

The National Tax Service of Korea (NTS) announced on Thursday that it has begun constructing a tracking system for cryptocurrency investment gains, aimed at supporting the government's expansionary fiscal policy and the need to increase fiscal revenue.The system's construction comes just before the government's plan to tax profits from virtual assets starting in January next year. According to the announcement, the NTS has tendered for the "Comprehensive System for Virtual Asset Transaction Analysis," a project published on the electronic bidding platform by the Public Procurement Service, responsible for government and public institution procurement, with a budget of 3 billion won (approximately 202,000 USD). According to the plan, the winning bidder will be selected and contracted within this month, with system design starting in April, followed by multiple rounds of testing before entering a trial operation phase in November, and is expected to officially launch within the year.The NTS stated that the system will start collecting individual virtual asset transaction data from 2027, systematically managing and analyzing vast amounts of transaction information to more effectively detect tax evasion, including identifying hidden income of tax delinquents through tax audits.Notably, the NTS plans to incorporate artificial intelligence and machine learning technologies to analyze and track abnormal transaction types and patterns. Additionally, relevant virtual asset analysis data and lists of suspects will be shared with other government departments such as the Korea Customs Service, the Statistics Korea, and the Bank of Korea.According to Korean tax law, starting in January next year, the portion of annual income from virtual assets exceeding 2.5 million won will be subject to a comprehensive tax rate of 22% (including 20% income tax and 2% local income tax).

According to BitcoinNews, the cryptocurrency exchange Coinbase is accused of potentially lobbying U.S. lawmakers behind the scenes against establishing a small transaction tax exemption for Bitcoin, suggesting that the exemption should be limited to stablecoins.Previously, Bitcoin policy advocate Marty Bent disclosed on social media that Coinbase has told lawmakers "no one uses Bitcoin as a currency" and believes that establishing a small tax exemption for Bitcoin would be a "subsidy destined to fail." The crypto community considers this "very concerning" if true, aligning with recent worries about cryptocurrency legislation (such as the GENIUS Act), namely that some policies may be influenced by special interest groups and regulatory capture rather than genuinely promoting innovation. Over the past three months, there has been a noticeable shift in policy discussions on Capitol Hill, with some proposals leaning towards providing small transaction tax exemptions only for stablecoins, excluding Bitcoin.Additionally, the Bitcoin advocacy organization Bitcoin Policy Institute stated that ongoing communication with lawmakers continues, and limiting the small tax exemption policy to stablecoins would be a strategic mistake for U.S. policy, as the organization has long advocated for exempting small Bitcoin transactions from capital gains tax.

According to CriptoNoticias, the Paraguayan National Tax Authority has issued Resolution No. 47/26, strengthening tax regulation on Bitcoin and cryptocurrencies.The new regulations require platforms and administrators to report detailed information on each user transaction, including wallet addresses, the network used, and transaction hashes, among other sensitive data. The regulatory scope covers donations, inheritances, and NFTs exceeding $5,000 annually. This measure aims to incorporate digital assets into the national tax system while adhering to the anti-money laundering recommendations of the Financial Action Task Force.

According to Bitcoin News, the Internal Revenue Service (IRS) has introduced a new form for cryptocurrency audits, requiring taxpayers to report the complete history of the trading platforms and wallets they have used.The form lists over 100 platforms, including Coinbase, Binance, Kraken, FTX, and Mt. Gox, as well as self-custody wallets like MetaMask, Ledger, and Trezor. Taxpayers must indicate "yes" or "no" for each platform and sign to confirm that the information provided is true and accurate; otherwise, they may face perjury penalties.The form is designed to map the complete cryptocurrency footprint of taxpayers across exchanges and wallets, potentially tracing back several years. Tax professionals warn that this document could pose significant legal risks and advise consulting a crypto tax attorney before signing. Failing to disclose platforms used years ago may raise questions, while disclosing too much could also lead to new investigative leads.

Coinbase stated that the IRS's newly introduced digital asset tax reporting form 1099-DA rules are overly complicated and may impose unnecessary administrative burdens on a large number of cryptocurrency holders.Coinbase's Vice President of Tax, Lawrence Zlatkin, pointed out that the new regulations require reporting small transactions such as stablecoin trades and network gas fees, while stablecoins themselves have relatively stable prices and gas fees are usually only a few dollars or even lower. Reporting such information could lead to "over-reporting" in the system, making the tax framework more complex.It is reported that Coinbase is currently sending 1099-DA forms to millions of users in the U.S. This system requires trading platforms to report users' digital asset transactions to the IRS and provide users with a copy for their own reporting of gains and losses. However, in this year's reporting, Coinbase will only report the total gross proceeds from digital asset sales to the IRS and will not provide the cost basis, requiring users to calculate their actual taxable gains themselves. This may lead to confusion among some investors, and Coinbase plans to calculate the cost basis for users starting from the next tax year to simplify the reporting process.

The IRS proposed new regulations on Thursday that would allow cryptocurrency exchanges to require customers to receive tax forms electronically, such as the 1099-DA form that reports total gains from digital asset transactions, whereas previously exchanges had to provide a paper form option.Under the new tax reporting system implemented this year, cryptocurrency exchanges are required to report total gains and cost basis, and the IRS will automatically obtain detailed profit and loss data, thereby enhancing compliance oversight for cryptocurrency holders. The new regulations also allow exchanges to terminate business relationships with customers who refuse to receive tax documents electronically. The proposal has not yet been finalized and is currently open for public comment. It has been reported that cryptocurrency tax software platforms have seen a significant increase in the number of IRS warning letters received by U.S. users, reminding them that cryptocurrency transactions may be taxable and must be reported as required.

Cryptocurrency journalist Eleanor Terrett posted on the X platform that another key advocate for cryptocurrency tax reform in the U.S. Senate will not seek re-election.Senators Lummis and Steve Daines have confirmed they will not run for re-election, and Marsha Blackburn will also leave the Senate if elected Governor of Tennessee.

According to CoinDesk, the South Korean National Tax Service has apologized after a seizure operation inadvertently displayed original photos containing hardware wallet recovery phrases, leading to the theft of $4.8 million in cryptocurrency. The South Korean National Tax Service stated that it failed to recognize the inclusion of sensitive information when providing photos from the seizure site.The South Korean National Tax Service has now requested police intervention to recover the assets and plans to conduct a comprehensive review of security systems and virtual asset management manuals. South Korean Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol posted on the X platform that institutions such as the Financial Services Commission and the Financial Supervisory Service will investigate this leak incident and strengthen the regulation of public institutions managing digital assets.

According to a report by Reuters, the ruling party in Turkey has submitted a new tax law draft to parliament, proposing a 10% withholding tax on profits from cryptocurrency transactions conducted on compliant platforms, to be withheld and paid quarterly; profits from cryptocurrency transactions conducted outside authorized platforms would need to be reported and taxed annually.The draft also proposes a 0.03% transaction tax on cryptocurrency service providers, applicable to sales and transfer transactions they facilitate or conduct directly. In recent years, due to high inflation and the depreciation of the lira, the use and trading volume of cryptocurrency in Turkey have rapidly increased, with annual trading volume approaching $200 billion by 2025.