tax

The U.S. House of Representatives' fundraising committee is scheduled to review a series of digital asset tax legislation on September 16, advancing the crypto tax bill toward a full House vote. This review focuses on two core issues: when miners and stakers should pay taxes on newly created tokens, and whether the wash sale rules applicable to stocks should cover digital assets.The two key bills are the "Mining and Staking Tax Clarification Act" H.R. 9175 and the "Applying Existing Tax Anti-Abuse Rules to Digital Assets Act" H.R. 9172. The former stipulates that miners and stakers do not need to pay taxes immediately upon receiving new tokens but can wait until the tokens are actually sold to pay taxes as ordinary income; the latter extends wash sale and constructive sale rules to actively traded digital assets, closing tax loopholes that crypto traders have exploited for years.

Bitcoin News posted on platform X that after the CFTC approved Kalshi's Bitcoin perpetual contracts as futures products, traders face uncertainty on how to report gains to the IRS.If the product is classified as a regulated futures contract under Section 1256 of the U.S. Tax Code, related gains are typically treated as 60% long-term capital gains and 40% short-term capital gains, regardless of the holding period. CME believes that Kalshi's perpetual contracts are actually swaps, which are explicitly not covered under Section 1256. The CFTC's classification supports the view that it is a futures product, but does not bind the IRS; the tax treatment remains uncertain until the IRS, Congress, or the courts directly address Bitcoin perpetual contracts.

According to Bits.media, Vladislav Glazcheva, an advisor to the Federal Financial Monitoring Service of Russia, stated that when opening accounts at digital hosting institutions in Russia, customers will be required to provide a taxpayer identification number to ensure the transparency of cryptocurrency transactions and prevent money laundering.Previously, it was not mandatory to provide a taxpayer identification number when opening a bank account. In addition, the Russian Financial Monitoring Service has been authorized to monitor all cryptocurrency transactions, and any transaction amount exceeding 60,000 rubles must be reported to the regulatory authorities with complete information about both parties involved in the transaction, including names and actual addresses. The Central Bank of Russia is also studying a mechanism to link taxpayer identification numbers with bank accounts, and the related "anti-fraud" platform is expected to officially launch in 2027.

The spokesperson for the Ministry of Commerce, Huang Ling, stated that the economic and trade teams of China and the United States are negotiating a framework arrangement for reciprocal tariff reductions of 30 billion dollars, aiming for early implementation.

According to The Block, the Blockchain Association and the Crypto Council for Innovation filed a preliminary injunction motion on September 9 in the Sangamon County Circuit Court in Illinois, requesting to halt the new cryptocurrency tax in the state before it takes effect. This summer, Illinois Governor J.B. Pritzker signed the Digital Asset Tax Act, which proposes a 0.2% tax on digital asset transactions, set to take effect in January 2027.Previously, the two associations, along with the Digital Chamber, filed a lawsuit against the state in August. In a 34-page motion, the organizations stated that the tax is unprecedented and has caused "irreparable harm" to industry members, and that if the bill takes effect, it will force businesses to comply hastily without clear guidance, facing the risk of criminal penalties. They also pointed out that the law violates the Illinois Constitution by implementing differential taxation on digital assets and contravenes the federal Internet Tax Freedom Act, which prohibits discriminatory taxes on e-commerce. The Illinois Governor's office has not yet responded to requests for comment.

According to CoinDesk, the Crypto Innovation Committee (CCI) and the Blockchain Association filed a preliminary injunction motion on Wednesday in the Sangamon County Circuit Court of Illinois, requesting to suspend the enforcement of the state's digital asset transaction tax during the litigation. The tax rate is 0.2% and applies to entities headquartered in Illinois or providing services in the state with total revenue exceeding $100,000, which is set to take effect on January 1, 2027.The two lobbying organizations, along with the Digital Chamber, filed a lawsuit against Illinois last month, claiming that the tax violates the Internet Tax Freedom Act and the U.S. Constitution, and that Illinois's approach to taxing digital assets differs from other financial services.CCI CEO Ji Hun Kim stated that businesses are forced to spend millions of dollars to build compliance systems, yet basic issues such as the tax subjects and timing remain unclear. Blockchain Association CEO Summer Mersinger warned that if the law is enacted, Illinois will not be the last state to attempt this.

Pons founder and lead developer Ozzy responded on September 9, stating that modifying the tax rate after the token launch is not supported, and the claim that "Pons can adjust the tax rate after launch" is incorrect.Ozzy indicated that the initialized Uniswap V4 pool for Pons has a 0% tax rate and a 1% Hook fee, which is clearly disclosed in all transactions. Some terminals incorrectly routed buy and sell orders to high tax liquidity pools due to router configuration issues, including vampire pools created by malicious actors, resulting in abnormally high tax rates displayed, which is not a modification of the tax rate after Pons' launch.Ozzy has requested the relevant terminals to correct the erroneous routing and stated that if users see a tax rate higher than 1%, unless the deployer set a higher tax rate at launch, it is likely routed to the wrong pool.

According to German media Golem, the Federal Ministry of Finance is preparing a bill to include cryptocurrency gains under capital gains tax. Speculative gains from digital assets such as Bitcoin and Ethereum will be taxed at a rate of 25% starting as early as 2028, consistent with the current stock trading gains tax rate. Currently, selling crypto assets after holding them for more than a year is tax-free, while selling them within a year incurs a personal income tax rate of up to 45%.The bill proposes to retain the personal tax-free allowance (currently €1,000 per person) and allows crypto gains to offset losses from stocks and other securities; taxpayers with a personal tax rate below 25% can also apply for a "favorable assessment" to reduce their tax burden. This tax will apply to crypto assets purchased after January 1, 2027, and it remains to be clarified by legislation whether assets held prior to this date will enjoy transitional protection. The Ministry of Finance expects this move to generate approximately €350 million in additional tax revenue each year, and the bill has been submitted to other federal departments for consultation.

The report from the Cornell Brooks School Tech Policy Institute (BTPI) shows that if the United States implements a minimum exemption for Bitcoin and cryptocurrency payments under $300, the federal net revenue is expected to increase by $859 million over 10 years, with a range of $172 million to $2.58 billion, assuming the number of digital asset payment users remains at 5.4 million.The bill S. 2207 proposed by U.S. Senator Cynthia Lummis aims to exempt capital gains tax on related payments, with an annual tax-free capital gains limit of $5,000. Some other legislative initiatives propose to limit the scope of the exemption to regulated stablecoins, and discussions are still ongoing. BTPI states that the current capital gains tax and small transaction reporting requirements suppress daily Bitcoin payments. If the transaction-level tax and reporting burdens are removed, it could increase Bitcoin payments and demand; under the current adoption level, the recent impact on Bitcoin prices and taxes may be small, while the long-term impact depends on factors such as the scale of payments.

Blockchain analysis company Chainalysis estimates that France's potential taxable cryptocurrency activity will reach $9.4 billion by 2025, including $5.2 billion from payments, $2.5 billion from capital gains, and $1.7 billion from mining and staking income. French taxpayers reported only €368 million in net income for the 2024 fiscal year, involving about 24,000 people, an increase from approximately 7,700 people and €150.8 million in the previous year.Chainalysis stated that the non-compliance rate for cryptocurrency taxes in some countries may exceed 90%. The EU's eighth directive on administrative cooperation, DAC8, came into effect on January 1, 2026, requiring cryptocurrency service providers to collect user identity and transaction data. Tax authorities in member states will start exchanging relevant records cross-border from September 30, 2027; CARF currently covers about 14% of the world's potential taxable on-chain activities.

According to Cryptopolitan, the far-right party Alternative for Germany (AfD) won first place in the Saxony-Anhalt elections with a vote share of 43.8%, securing 39 out of 83 seats, while the CDU's vote share significantly dropped to 17.2%. Although this victory does not directly affect federal tax law, it will further strengthen AfD's voice in the discussions on cryptocurrency tax reform in Berlin.AfD has consistently advocated for the retention of the 12-month tax exemption policy for Bitcoin holdings and opposes including private mining and Lightning Network node operations under commercial taxation. In contrast, the German Ministry of Finance plans to abolish this tax exemption period, aiming to increase annual revenue by at least 1 billion euros.

According to Bitcoin.com, the Swedish Tax Agency has issued tax reassessments and fines totaling approximately $56.5 million (around 540 million Swedish Krona) to six cryptocurrency mining companies in Boden, accusing them of disguising their mining operations through complex corporate structures and illegally obtaining tax benefits for data centers.This enforcement action stems from a comprehensive industry audit covering 2024 to 2026, with a total of nine mining companies nationwide being pursued for over $50 million in taxes, with the six companies in Boden accounting for the vast majority. Among them, Bikupan Datacenter, a subsidiary of Hive Digital, has initiated financial restructuring due to its inability to pay taxes and has appealed the tax ruling to the Supreme Administrative Court. A previous investigation by the public broadcaster SVT Norrbotten revealed that cryptocurrency mining companies have caused the Swedish government to lose approximately $100 million in tax revenue.

According to Digital Asset, the National Tax Service of South Korea has issued regulations stating that even if overseas virtual asset (digital asset) exchanges go bankrupt, individuals with accounts at those exchanges must declare those accounts as overseas financial accounts. The National Tax Service stated on the 28th of last month: "Residents who open accounts with overseas virtual asset operators for the purpose of trading digital assets must declare those accounts as overseas financial accounts, even if the operators go bankrupt."In addition, it is expected that the scale of digital assets included in the overseas financial account declaration will reach 105 trillion Korean won by 2026, a decrease of 5.4% compared to 2025.

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.

Bitcoin News posted on the X platform stating that a new analysis by the Cornell Tech Policy Institute estimates that exempting capital gains tax on small digital asset purchases could increase U.S. federal government revenue by approximately $859 million over the next 10 years.The S. 2207 bill proposed by Senator Cynthia Lummis would exempt qualified purchases under $300 from capital gains confirmation, with an annual exclusion limit of $5,000 for capital gains. The study claims that, based on core assumptions, every $100 of qualified benchmark payments could generate $3.18 in federal net revenue.

According to Bitcoin Magazine, Mexican billionaire Ricardo Salinas has publicly expressed his support for Bitcoin, stating that "Bitcoin changes a fundamental rule: no one can print more money just because they want to." He characterized fiat currency inflation as an "invisible tax" and called on the public to learn relevant knowledge, purchase, and hold Bitcoin to protect savings and defend freedom.It is worth noting that Salinas is currently under investigation for tax fraud in Mexico and the United States.

The cryptocurrency retirement investment platform BitcoinIRA has announced the launch of Freedom Accounts, which are individual taxable cryptocurrency investment accounts now available to eligible clients. These accounts can be managed alongside Crypto IRAs on the same platform and dashboard for both retirement and non-retirement cryptocurrency investments.These accounts are not subject to IRA contribution limits, required minimum distributions, or age withdrawal restrictions. Clients can fund them with cash or transfer supported cryptocurrencies in-kind from external platforms like Coinbase, Kraken, and Robinhood without having to sell first. BitcoinIRA does not charge fees for eligible in-kind transfers (network or sending platform fees may apply). Accounts can buy and sell over 100 cryptocurrencies 24/7, offer staking rewards on eligible assets (not guaranteed), and support automatic rebalancing of Crypto Bundles or custom portfolios.Custody is provided by Nevada-licensed trust company Digital Trust and BitGo multi-signature wallets. Freedom Accounts complement rather than replace Crypto IRAs, and eligible BitcoinIRA accounts automatically include this feature. BitcoinIRA was founded in 2016 and has processed billions of dollars in transactions for over 200,000 Americans. Co-founder Chris Kline stated that clients' financial lives extend beyond IRAs, and Freedom Accounts are the next step in expanding the platform, allowing clients to manage retirement and non-retirement cryptocurrency investments more flexibly in one place.

Ireland is preparing to exclude cryptocurrencies from the government-designed personal investment accounts set to launch in 2027, which will allow savers to invest in listed stocks, bonds, and exchange-traded funds (ETFs). The Irish government has classified cryptocurrencies and derivatives as "highly complex and higher-risk products" in its retail investment tax roadmap, and they will not be included in the scope of qualifying assets.The new accounts will set a yet-to-be-determined tax-free threshold, with amounts above the threshold subject to a low tax rate based on annual average value, and the existing deemed-disposal regime (which taxes unrealized gains at a rate of 38% every eight years) will not apply to investments within the accounts. Account providers will be responsible for calculating, reporting, and paying taxes to the Irish Revenue Commissioners, and savers will not face minimum contribution amounts, holding period, or lock-in period restrictions.The product list follows the European Commission's September 2025 recommendations regarding savings and investment accounts, which exclude high-risk and complex derivatives and cryptocurrencies, but with the exception of tokenized financial instruments. Tax rates, thresholds, and annual contribution limits are expected to be determined in the 2027 budget to be announced in October. Research from the Central Bank of Ireland shows that 38% of Irish households' financial assets are held in cash and deposits, higher than the EU average of 30%.

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).