tax

The UK's HM Revenue and Customs has confirmed that depositing crypto assets into DeFi lending protocols and liquidity pools will no longer be considered a taxable disposal, and capital gains tax will be deferred until the investor actually economically disposes of the asset. This measure was announced on Monday and will take effect on April 6, 2027, amending the 1992 Taxation of Chargeable Gains Act. HMRC estimates that this measure will affect approximately 700,000 individuals and trustees using crypto loans and liquidity pools. Aave founder Stani Kulechov stated that this practice is "the right direction."

The UK HM Revenue and Customs has issued a policy document proposing that starting from April 6, 2027, certain crypto asset loans and liquidity pool arrangements involving individuals and trusts will be subject to a "no gain no loss" treatment, meaning that capital gains tax will be deferred until an economic disposal occurs.

According to Bitcoin News, a Bitaxe ASIC miner equipped with a single chip mined Bitcoin block number 957,382, earning the full block reward of 3.1382 Bitcoins, valued at approximately $200,580. This miner has a hash rate of about 1 TH/s and is the only device at that address.Since mining was done through a public mining pool (with a fee of 0%), the miner's owner retained 100% of the block reward and transaction fees. The mining difficulty of this block reached 294.14T, which is more than 2.2 times the required difficulty of 133.87T. With a hash rate of 1 TH/s, the average probability of mining a block is about once every 16,000 years, making this an extremely rare event.

According to Reuters, the Reserve Bank of India reiterated its call for a "tendency to ban" cryptocurrency policies, while the country's tax department warned that transactions conducted through offshore exchanges are difficult to trace. These documents reveal that, although the government has not yet implemented policies to ban or regulate cryptocurrency, major government agencies in India tend to favor stricter restrictions on virtual digital assets.Since a court ruling in 2018 declared the Reserve Bank of India's (RBI) policy effectively banning cryptocurrency invalid, India has allowed cryptocurrency to remain in a gray area. Legislation drafted in 2021 aimed at banning private cryptocurrencies was never submitted for parliamentary consideration, and a discussion paper on the topic has also been postponed multiple times. The government has delayed the implementation of a formal virtual asset policy, stating that any plan should balance innovation and risk management while protecting monetary sovereignty, financial stability, and preventing consumer losses.

According to The Edge Malaysia, South Korean Chief of Staff Kang Hoon-sik stated on July 5 that the Lee Jae-myung government plans to establish a "Future Response Fund" using the additional tax revenue generated by the semiconductor boom. This fund will support three major super projects (semiconductors, physical AI, data centers), cultivate new growth momentum, address "K-shaped" economic polarization, and provide housing, entrepreneurship, and employment support for the young population aged 20 to 30.Samsung Electronics, SK Hynix, and government agencies plan to invest hundreds of billions of dollars in the aforementioned projects, aiming to strengthen South Korea's global competitiveness in the chip and AI sectors and promote balanced development outside the capital region.

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.

According to PYMNTS, the new cryptocurrency tax in Illinois, USA, will take effect on January 1, 2027. The law firm Jones Day stated that any brokers with business exposure in Illinois should begin registration preparations as soon as possible and review existing record-keeping processes to meet the upcoming compliance requirements.

Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated on the X platform that Illinois' legislation implementing a so-called "sin tax" on blockchain technology could jeopardize Chicago's future status as a financial market center.The bill even imposes taxes on the transfer of cryptocurrency assets that have not generated any economic benefits. Mike Selig referred to it as "slowdown legislation" and stated that the bill transforms residents' property rights from "inherent rights" to "privileged rights that require permission."Mike Selig further added that, against the backdrop of blockchain technology continuously reshaping financial markets, replacing policies that promote economic growth with taxes on cryptocurrency wallets may be viewed by history as a turning point or even a signal of decline for Chicago's financial development.

The Korean Tax Tribunal recently made a re-investigation ruling on a dispute regarding the gift tax on Bitcoin. The case involves whether transferring Bitcoin through a spouse's overseas exchange account constitutes a gift, which has attracted widespread attention in the cryptocurrency tax community. The case shows that taxpayer A transferred 67 Bitcoins stored in a personal hardware cold wallet (Ledger) to avoid direct transfer to a domestic exchange due to the Travel Rule regulatory restrictions in South Korea, using spouse B's overseas exchange account for the transfer. The entire process took only 2 to 8 minutes, after which the Bitcoins were sold to purchase real estate.The tax authorities determined that this action constituted a gift between spouses and imposed a gift tax on A. A appealed, claiming that the Bitcoins were personal assets held since before 2014 and submitted a memorandum of understanding signed with the spouse—where it was agreed that if the Bitcoins appreciated, real estate would be purchased, and 13 Bitcoins would be gifted to the spouse as compensation. A argued that determining it as a gift solely based on the brief passage of funds through the spouse's account was a qualitative error.After review, the Tax Tribunal found that A failed to adequately submit key evidence such as the memorandum of understanding, gift contract, and photos of the hardware wallet during the tax investigation, leading to flaws in the investigation process. At the same time, the distribution method of 67 Bitcoins transferred to A's account and 13 Bitcoins retained under the spouse's name was consistent with A's statements. Based on this, the Tribunal ruled that a new investigation must be conducted regarding the actual ownership of the hardware wallet and the substantive ownership of the digital assets. This case is seen as a landmark case in South Korea's cryptocurrency tax practice, directly addressing the challenges of determining ownership of cold wallet assets and the tax classification of cross-account transfers.

According to Cointelegraph, Ethereum is embroiled in a fierce governance debate over the source of core development funding. Last Friday, former Ethereum Foundation contributor Trenton Van Epps warned that as old support programs deplete and foundation expenditures shrink, the core development ecosystem could face a "slow-burning funding crisis" within three to nine months, requiring approximately $30 million annually to maintain over a dozen clients, research, and coordination teams.The core of the debate stems from the "validator redirect income" proposal put forward by Kleros co-founder Clément Lesaege, which suggests redirecting 0% to 10% of validator rewards to an ecosystem funding pool, estimated to generate about 50,000 to 70,000 ETH annually at current staking levels. This proposal has faced widespread opposition, with critics warning that it could entrench the power of large validators and blur the boundaries between operations and governance. Some community members previously countered that the foundation's funds are sufficient to operate for 30 years, but the foundation's actual decisions indicate that it is actively shrinking expenditures and pushing for diversified funding models.On Monday, a nonprofit organization called EthLabs was announced, initiated by five former Ethereum Foundation researchers, aiming to directly fund development through large ETH holders. On Tuesday, Ethereum founder Vitalik Buterin stated that the foundation is cutting its budget by about 40% according to established policies and has recently laid off 54 people.

According to market news, Japanese cryptocurrency automatic profit and loss calculation service provider Pafin will acquire industry backbone company Gtax and plans to complete the service brand integration in October.

According to Bloomberg Tax, U.S. Senate Republican tax drafter Steve Daines stated that the cryptocurrency tax legislation framework being advanced by the Senate has basically taken shape and may be announced as early as this fall. Daines said that the framework is "more similar than different" to the version previously released by the House Ways and Means Committee, and he hopes to hold a legislative markup meeting within this year, but did not disclose specific details.

The Ethereum community is debating the proposal to tax staking rewards. The newly established EthLabs has received support from institutions such as BitMine, providing off-chain funding alternatives for ecological development.

According to Cointelegraph, three major crypto lobbying organizations—the Blockchain Association, the Crypto Innovation Council, and the Digital Chamber of Commerce—jointly wrote to the U.S. Congress, requesting the unaltered passage of the "Mining and Staking Tax Clarity Act" without further amendments. The bill allows miners and stakers to choose to pay taxes either when they receive crypto rewards or when they sell their assets, aiming to address liquidity issues caused by "taxation on phantom income."Democratic Congressman Steven Horsford proposed an amendment to limit the deferral of crypto reward taxes to five years, but the CEO of the Crypto Innovation Council stated that the amendment would "undermine" the bill and only generate "negligible revenue." The American Bankers Association opposes the bill, claiming it gives cryptocurrencies a "significant advantage," while crypto lobbying groups believe that renegotiating the already reached compromise will "revive the issues the bill aims to resolve."

According to CoinDesk, major lobbying organizations in the U.S. cryptocurrency industry jointly sent a letter to the House Ways and Means Committee, urging the advancement of the "Tax Clarity for Mining and Staking Act," advocating for tax treatment options for cryptocurrency miners and staking income recipients. The bill was introduced by Republican Congressman Mike Carey, and its core content allows taxpayers to choose the timing of taxation when they receive new mining or staking assets—either paying taxes at the time the assets are generated or deferring taxes until the final sale.Industry associations, including the Blockchain Association, Digital Chamber, and Crypto Council for Innovation, have expressed support, arguing that the current tax system may force users participating in network security maintenance to bear tax burdens before they have realized the assets. Supporters claim that the proposal does not provide "indefinite deferral," but rather avoids immediate taxation on income that has not yet realized liquidity, thereby alleviating cash flow pressure on miners and validators.However, Democratic lawmakers and some external critics are concerned that this mechanism could be exploited by large mining companies for long-term tax deferral, especially in the context of some publicly listed or politically connected companies participating in mining operations, raising potential policy arbitrage disputes. Meanwhile, the industry's focus remains on the broader "Digital Asset Market Structure Act" (Clarity Act), but tax issues have become the second key battleground, expected to continue advancing in tandem with regulatory framework legislation in the coming weeks.

According to an open letter released by The Blockchain Association, multiple organizations related to cryptocurrency and blockchain have written to Jason Smith, Chairman of the U.S. House Committee on Ways and Means, and senior member Richard Neal, supporting the passage of H.R. 9175, the "Tax Clarity for Mining and Staking Act," as originally proposed by Congressman Mike Carey.The joint letter states that the bill provides a compromise solution for the taxation timing and nature of PoW mining and PoS staking rewards under the "self-created assets" tax framework, avoiding immediate taxation on "unrealized gains" and reducing forced selling and compliance burdens. It also opposes the addition of additional clauses such as a five-year mandatory confirmation in the existing text, urging Congress to legislate as soon as possible to stabilize the tax expectations for blockchain validation activities in the United States.

According to "Du Jia," ByteDance's AI assistant "Doubao" is ramping up efforts in the instant travel sector. Currently, the Doubao App is conducting a grayscale test of the one-click ride-hailing feature for select users in Beijing and Hangzhou. After users input their travel needs via voice in the dialogue box, the system can automatically recognize the information and match it with available vehicles. Once confirmed, users can complete the order with one click, and the related ride-hailing services are provided by Cao Cao Mobility.It is reported that Cao Cao Mobility has integrated exclusive orders for Doubao and is offering additional service fees to drivers who complete these types of orders. Last week, Cao Cao Mobility launched its new RoboX strategy in Hong Kong, announcing a comprehensive AI transformation, establishing an AI division, and proposing a "Double 100,000 Plan" to deploy 100,000 Robotaxis and 100,000 Robovans by 2030.

According to Edaily, the South Korean "Abolition of Virtual Asset (Cryptocurrency) Tax" national petition has received 58,571 approvals. According to the National Assembly Act, the relevant petition should be submitted for review at the first committee meeting held after 30 days of being handed over to the committee.According to the current income tax law, starting from January 1 next year, income from the transfer or lending of virtual assets will be classified as other income and will be subject to income tax. Virtual asset income exceeding 2.5 million won (approximately 1,800 USD) will be subject to a total tax rate of 22%, which includes other income tax (20%) and local income tax (2%).