tax

Nate Geraci, President of ETF Store, expressed that his initial interpretation of the latest notice from the U.S. Treasury regarding 351 exchanges is not as optimistic as some industry insiders. Geraci believes that if the asset portfolio transferred into the ETF significantly differs from the ETF's own investment strategy, it may face issues, especially in cases where the related assets are quickly reduced or completely sold off through physical redemptions.He also pointed out that the Treasury's guidance is not clear regarding the specific applicable boundaries, making it currently difficult to determine which operations may be permitted. Further guidance is expected to be issued in the future.

The Ministry of Commerce announced the framework for the China-U.S. Trade Council and the "300 billion for 300 billion" reciprocal tariff reduction. The U.S. side will reduce tariffs on approximately 30 billion dollars of imported goods from China, including toys, home appliances, and baby products, while the Chinese side will reduce tariffs on approximately 30 billion dollars of imported goods from the U.S., including agricultural products and medical devices. Both sides will jointly announce a list of tariff-reduced products.

According to Cointelegraph, the Internal Revenue Service (IRS) in the United States has stipulated that for transactions in 2025, brokers generally need to report the sales income from digital assets, but in most cases, they do not need to report the cost basis, and taxpayers still need to calculate their gains and losses themselves; starting from 2026, brokers will need to report the cost basis for eligible digital assets. The IRS also emphasized that even if a taxpayer does not receive a 1099-DA, they still must report income and gains and losses related to digital assets.During the first tax season applying the 1099-DA reporting rules for cryptocurrency assets in the United States, some investors are facing issues such as missing transaction data and difficulties in verifying cost basis. A survey conducted by Awaken Tax in August among 1,000 U.S. cryptocurrency investors showed that 21% of respondents who have filed or plan to file for an extension are still waiting for exchanges or cryptocurrency platforms to provide the necessary information; about 20% indicated that their 1099-DA form information is incomplete or are unsure whether it accurately reflects their trading situation.

According to Bitcoin.com, Hive Digital Technologies has filed a complaint with the European Commission regarding the Swedish VAT dispute. The Swedish Tax Agency reclassified the data center services of its two Swedish subsidiaries as self-mining and retroactively applied this classification to relevant operations since 2022.This classification excludes the relevant operations from VAT collection, and the input VAT that the subsidiaries have received may need to be returned. Hive believes that its subsidiaries provide computing power services to specific clients under contract, which should be considered taxable operations. The Swedish court refused to submit the issue to the Court of Justice of the European Union. Hive stated that the court did not provide a reason for the refusal and has submitted the dispute to the European Commission.

Chainalysis released the "Cryptocurrency Tax Report: Data from Specific Countries," estimating that the scale of global cryptocurrency-related taxable activities is approximately $457 billion, covering transaction gains, on-chain income, and digital payments. The report states that it uses on-chain data to map these activities by region and country, providing tax authorities with a geographic view of potential taxable activities within their jurisdiction.Among them, stablecoin payment flows are the largest and most widely distributed category globally. The report also analyzes cross-border channels and their impact on direct and indirect tax obligations, demonstrating how on-chain intelligence can help tax authorities identify high-value, high-risk wallets to determine enforcement priorities.

The spokesperson for the Ministry of Commerce, He Yadong, stated that the economic and trade teams of China and the United States are maintaining close communication on the issue of mutual tariff reductions amounting to 30 billion dollars, and relevant progress will be released in due course.

The House Committee on Ways and Means passed the "Digital Asset Tax Clarification Act" with a vote of 38 in favor and 5 against, establishing the first federal tax framework for digital assets. The bill sets a threshold for taxation, stating that cryptocurrency transactions with network or transaction fees not exceeding $10 are exempt from taxes, but this exemption does not apply to service providers conducting transactions on behalf of others, and the relevant provisions will not take effect until December 2027.The bill also requires the Treasury Department to establish a voluntary disclosure program for digital assets within 12 months of the bill's enactment, allowing eligible taxpayers to amend previous filings and settle owed taxes, interest, and penalties. The bill specifies that income from mining and staking will be taxed as ordinary income, while allowing certain investment trusts to stake without affecting their tax status. The previous version included an option for deferred income recognition, but that provision has been removed, and the issue of income recognition timing remains unresolved.Committee Chairman and Republican Congressman Jason Smith called it a historic moment for the committee. This vote took place the day after the Senate's procedural vote on the "Clarity Act" failed (49 votes to 50), with Democrats opposing the bill mainly due to ethical concerns raised by Trump's cryptocurrency interests. The House will recess until after the November elections, and the bill may advance during the lame-duck session, with public attention shifting to the Senate Finance Committee.

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.

Shanghai Guotou Xian Dao recently led a new round of financing for Hello Robotaxi with approximately 100 million USD, with Min Jin Investment and Genesis Partners Venture Capital participating.After this round of financing, the valuation of Hello Robotaxi's business is close to 3 billion USD.

Argentina has committed to implementing the OECD's "Crypto Asset Reporting Framework" and will launch automatic exchange of tax information on crypto asset transactions by September 2029 at the latest. Argentina needs to incorporate this framework into its national laws before 2029 and clarify the reporting obligations of relevant crypto asset service providers.Trading platforms, intermediaries, and other related service providers will be responsible for identifying eligible users and collecting information such as names, addresses, tax residency, taxpayer identification numbers, and transaction information related to buying, selling, and transferring crypto assets. This measure will not introduce new types of taxes, nor does it mean that users will automatically incur new tax obligations; Argentina's tax authority ARCA will have access to standardized information on the overseas crypto asset transactions of domestic residents and will compare it with tax declarations. The first annual information reporting period to be included in this mechanism has not yet been publicly determined.

According to Digital Assets, South Korea's Deputy Prime Minister and Finance Minister nominee Lee Hyeong-jin stated at a parliamentary hearing that taxing virtual assets poses a relatively small burden for most investors and is not expected to have a significant impact on the market.Data shows that about 95% of investors hold assets of less than 5 million Korean Won; when the acquisition cost cannot be proven, 50% of the income can be considered necessary expenses, plus a basic deduction of 2.5 million Korean Won, resulting in a limited actual tax burden for small investors.

The Chairman of the U.S. House of Representatives' Ways and Means Committee, Jason Smith, announced the 114-page "Digital Asset Tax Clarification Act" (H.R. 10357), which aims to exempt taxes on network or transaction fees below $10, and will hold a committee review on September 16 at 10 AM. The bill stipulates that users with more than 5,000 transfers in the previous year are not eligible for the aforementioned fee exemption.Another accompanying bill aims to include digital assets in wash sale rules and presumption of sale rules, but excludes qualified stablecoins, expecting to increase revenue by $2.074 billion from fiscal years 2026 to 2036. The accompanying bill also proposes to allow miners and stakers to defer income from newly generated tokens until the time of sale, with an expected ten-year fiscal cost of $2.956 billion. Republican members of the committee are considering removing the relevant provisions or limiting the deferral period to five years.

On September 9, the National Assembly of Bulgaria passed an amendment to the Law on Tax and Social Security Procedures with 149 votes in favor, 0 against, and 10 abstentions, which will allow the Bulgarian National Revenue Agency to obtain detailed information about cryptocurrency asset users. The bill was approved by a vote in the 240-seat parliament.The amendment implements two European Union (EU) directives, requiring cryptocurrency-related businesses to register and report users' names, addresses, dates and places of birth, tax residency, and tax identification numbers to the Bulgarian National Revenue Agency, as well as submit transaction data for various cryptocurrency assets, including gross amounts received, transaction quantities, the number of fiat currency trades, and cryptocurrency exchange situations. Privacy advocates criticized the broad scope of data collection, arguing that mandatory disclosure of personal information could pose security risks. Cryptocurrency traders and small businesses expressed that the registration and reporting requirements would increase compliance costs; supporters of the bill believe it aligns with EU standards and helps curb tax evasion. The relevant directives require EU member states to complete adoption by December 31, 2025.

South Korean investors are once again pushing to delay the cryptocurrency capital gains tax scheduled to be implemented on January 1, 2027, but regulators insist on proceeding as planned. According to the South Korean National Assembly's electronic petition system, a petition requesting a two-year delay of the crypto tax plan has garnered 50,000 valid signatures, reaching the legislative review threshold, and will be automatically submitted for consideration by the relevant standing committee.South Korea plans to impose a 22% tax (including a 20% basic tax rate and a 2% local tax) on the portion of annual income from digital assets exceeding 2.5 million Korean won (approximately $1,856), covering income from the sale, transfer, and lending of cryptocurrency assets. This tax has been postponed three times since it was first discussed in 2022. Petitioners argue that the majority of crypto investors are suffering significant losses, with major South Korean crypto companies experiencing a decline in operating profits of up to 90%. Implementing the tax at this time would kick young people's wealth ladder away and could push investors toward offshore platforms.In May of this year, a petition calling for the abolition of the crypto tax reached the 50,000 signature threshold within eight days of submission but did not advance further. Meanwhile, the government's stance remains firm, with the nominee for the Minister of Economy and Finance, Lee Heung-ik (phonetic), stating last weekend that the crypto tax plan is proceeding as scheduled, and the National Tax Service will announce detailed tax standards later this year.

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.