tax

According to BBX data, institutional demand for Bitcoin ETFs maintained strong momentum yesterday. Today, both houses of Congress are advancing cryptocurrency legislation simultaneously for the first time, with the core dynamics as follows:The U.S. Bitcoin spot ETF recorded a total net inflow of approximately $358.1 million yesterday (May 13), with BlackRock, Inc. (NYSE: $BLK) subsidiary iShares Bitcoin Trust (NASDAQ: $IBIT) seeing a single-day net inflow of $269.3 million, the strongest single-day data in recent weeks; the overall U.S. Bitcoin spot ETF has recorded net positive inflows for seven consecutive weeks, further reinforcing the structural signal of institutional capital returning. Bitcoin closed above $80,000 yesterday, with a year-to-date increase of about 14%, and market sentiment remains relatively optimistic on the eve of the CLARITY Act markup.The House Ways & Means Committee held a closed-door meeting today (May 14) on cryptocurrency tax reform in sync with the Senate Banking Committee's CLARITY Act markup, covering topics such as the treatment of capital gains tax on crypto assets, tax reporting responsibilities for DeFi protocols, and the tax classification of Bitcoin mining and staking income; this marks the first time in 2026 that both houses of Congress are advancing cryptocurrency regulatory legislation on the same day, indicating that cryptocurrency regulatory legislation has expanded from a single market structure issue to a complete legislative ecosystem of "regulatory framework + tax system."

TON Strategy Company (Nasdaq: TONX) announced its Q1 2026 financial report, stating that the company currently holds approximately 221.9 million Toncoin, which accounts for about 4.29% of the total TON supply according to Tonstat data, with approximately 221.2 million already used for staking.The company indicated that its staking infrastructure currently accounts for about 26.18% of the total staking scale on the TON network. As of March 31, 2026, the fair value of the company's TON holdings was approximately $27.2 million. The financial report showed that the company earned about 2.2 million TON through staking in Q1, generating approximately $3 million in staking revenue; total revenue was $5.3 million, with a gross profit of about $4 million.However, due to the volatility of the TON coin price, the company recorded an unrealized loss of approximately $87.9 million in cryptocurrency assets for the quarter, with a pre-tax net loss of $91 million. As of the end of Q1, the company held approximately $35 million in cash and restricted cash, with no debt on the balance sheet.TON Strategy also stated that after the TON network completed a significant performance upgrade in April 2026, the network's staking yield increased from 0.34% in March to 1.39% in April, annualized to approximately 16.7%.In addition, the company mentioned that as Telegram continues to promote the development of the TON ecosystem and the overall market strengthens, as of May 6, 2026, the fair value of its 221.9 million TON holdings has risen to approximately $433.3 million.New CEO Kevin Wilson stated that the company's goal is to become "the core platform providing transparent TON exposure for institutional investors in the U.S. public market," emphasizing the long-term potential of TON in Telegram, payments, development tools, and AI Agent scenarios.

According to Cointelegraph citing Bloomberg, the U.S. House fundraising committee will hold a closed-door bipartisan briefing on cryptocurrency tax issues this Thursday.

Australia is considering significant reforms to its Capital Gains Tax (CGT) system, planning to replace the current 50% tax discount policy for long-term held assets with an "inflation-indexed" mechanism, covering investment categories such as cryptocurrencies and stocks. The current system allows individuals to be taxed only on 50% of the capital gains if they hold the asset for more than a year, a policy that has been in place since 1999.If the reform is implemented, investors will calculate their gains based on inflation-adjusted cost bases, which may lead to an increase in actual tax burdens during periods of rapid asset price increases. According to the proposal's logic, the new mechanism will only tax "real gains" (the portion after excluding the effects of inflation), but in a low-inflation environment, the indexed deduction may be lower than the current 50% discount, resulting in increased tax burdens for most investors. The impact on cryptocurrency investors is particularly pronounced.The current "hold to reduce tax" mechanism reinforces long-term holding (HODL) strategies, while the new proposal will weaken the advantage of time holding, significantly increasing the tax burden on unrealized gains during periods of high appreciation. The proposal is still in the discussion stage and is expected to face strong opposition from investor groups and the financial industry, with the focus of the controversy centered on the balance between capital formation efficiency and tax system fairness.

According to Cointelegraph, the Australian government plans to replace the 50% capital gains tax discount applicable to assets held for more than 12 months with an inflation-indexed taxation model. If the new regulations are implemented, it may increase the tax burden on long-term investments such as cryptocurrencies.The Australian Financial Review cited informed sources stating that this adjustment will be included in the budget for the fiscal year 2027, which the Albanese government will announce on Tuesday. The report noted that under the current rules, investors holding assets for more than 12 months can enjoy a 50% capital gains tax discount; the proposed plan will change this to taxing the full amount of real gains after deducting inflation. The new regulations are expected to take effect at the end of the fiscal year in July 2027, with a one-year transition period for assets purchased after May 10, 2026.

According to market news, the Korean National Tax Service is building an AI system costing about $2.2 million to track cryptocurrency transactions and crack down on tax evaders, expected to be completed by the end of 2026.The system will integrate exchange trading records with blockchain data to identify suspicious transactions such as money laundering, unreported gifts, and offshore tax evasion, and will expand its tracking scope to non-custodial wallets. The National Tax Service is coordinating implementation details with five major exchanges, including Upbit and Bithumb, with the final tax guidelines expected to be released by the end of 2026.A survey by the Financial Services Commission of South Korea shows that the country has verified over 11 million cryptocurrency investors, but the growth rate has significantly slowed, with the growth rate of tradable accounts dropping from 25% in the first half of 2024 to 3% in the second half. The South Korean government has confirmed that it will impose a 22% tax on cryptocurrency asset gains starting January 1, 2027, with taxes due on the portion of annual gains exceeding approximately $1,800. This tax has been postponed twice from its original schedule in 2025.

According to News1, the Korean National Tax Service is piloting the custody and management of seized virtual assets by entrusting them to private cryptocurrency custody institutions for the first time, with plans to run a trial until the end of this year.Major custody institutions in Korea, such as KODA, KDAC, Hecto WalletOne, BDACS, and InfiniteBlock, are all prepared to participate. Although the budget for this pilot project is only about $5,800, the industry believes that obtaining a reference case from the "Korean National Tax Service project" is of symbolic significance.

According to market news, Moon Kyung-ho, head of the Income Tax Division of the Ministry of Economy and Finance of South Korea, stated at an emergency meeting on the taxation of virtual assets that the government will proceed with the taxation of virtual assets as originally planned starting January 1 next year. This is the first time the Ministry of Economy and Finance has publicly expressed its stance on the issue of virtual asset taxation.According to the current income tax law, income generated from the transfer or lending of virtual assets will be classified as other income, with a tax rate of 22% applicable to virtual asset income exceeding 2.5 million won (20% other income tax plus 2% local income tax). The tax targets approximately 13.26 million investors. Head Moon revealed that the National Tax Service is formulating relevant announcements and has had multiple discussions with the five major virtual asset operators, expecting to conduct legislative announcements soon.

German Finance Minister Lars Klingbeil stated that the German government plans to tax Bitcoin and crypto assets in a way that differs from current rules, potentially abolishing the existing policy that allows for tax exemption after holding for more than a year, and aligning its tax treatment more closely with that of stock assets.The related adjustments have raised concerns among some legal scholars, who argue that if stricter tax regulations are implemented solely for Bitcoin, it may involve the equal protection principle in the German Constitution. Previously, Austria had already abolished a similar long-term holding tax exemption policy.

The leader of the Reform Party, Farage, has been accused by the opposition of having a conflict of interest. In 2024, he received a personal donation of £5 million from cryptocurrency investor Christopher Harborne, after which the Reform Party proposed a regulatory draft for the cryptocurrency industry, aiming to reduce the stamp duty on cryptocurrency transactions from 24% to 10%, and proposed the establishment of a national Bitcoin reserve and a reduction in capital gains tax on crypto assets.Farage has admitted to receiving the aforementioned donation, and the Reform Party stated that policy-making is unrelated to donors. Additionally, Harborne donated £12 million to the party last year, and cryptocurrency businessman Ben Delo also donated £4 million this year. Farage is currently facing allegations of violating House of Commons rules, which could result in the suspension of his parliamentary status and trigger a by-election in severe cases.

The leader of the Reform Party, Farage, has been accused by the opposition of having a conflict of interest. In 2024, he received a personal donation of £5 million from cryptocurrency investor Christopher Harborne, after which the Reform Party proposed a regulatory draft for the cryptocurrency industry in 2025, aiming to reduce the stamp duty on cryptocurrency transactions from 24% to 10%, and proposed the establishment of a national Bitcoin reserve and a reduction in capital gains tax on crypto assets.Farage has admitted to receiving the aforementioned donation, and the Reform Party stated that policy-making is unrelated to donors. Additionally, Harborne donated £12 million to the party last year, and cryptocurrency businessman Ben Delo also donated £4 million this year. Farage is currently facing allegations of violating House of Commons rules, which could result in his suspension from parliamentary duties and trigger a by-election in severe cases.

The Korean National Tax Service has initiated preparations for the taxation of virtual assets, aiming for formal implementation in January 2027, and is preparing for comprehensive income tax declarations in May 2028.According to the current income tax law, income from the transfer and leasing of virtual assets will be classified as "other income," with a tax rate of 22% applied to the portion of annual income exceeding 2.5 million won, affecting approximately 13.26 million people. The Korean National Tax Service plans to obtain data from exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax starting next year to improve the tax collection infrastructure and promote the launch of a comprehensive analysis system for virtual assets within the year. However, controversies surrounding the taxation standards and the risk of capital outflow continue.

Since the new system was launched by the Korean National Tax Service in July 2025, 33.9 billion won in unpaid taxes has been recovered through cross-border tax cooperation over the past nine months, accounting for most of the total amount recovered cross-border since 2015.Reports indicate that starting next year, South Korea will receive virtual asset transaction data from 56 countries based on a new cryptocurrency reporting framework, and plans to exchange information on overseas real estate holdings and transactions starting in 2030.

According to market news, the legislative committee of the Russian government has approved a proposal from the Ministry of Finance to include operations related to digital currencies within the scope of personal income tax collection, which includes cryptocurrency exchanges.The bill proposes that transaction costs be accounted for using the FIFO (First In, First Out) method and prohibits the carryover of losses from digital currency transactions to future tax periods. Meanwhile, certain services and transactions are proposed to be exempt from value-added tax, including services from digital custodians, cryptocurrency exchange services, and certain foreign digital rights transactions without physical delivery. For debt-type digital financial assets (such as tokenized bonds), the bill sets separate profit tax calculation rules and allows for loss carryover. Previously, the State Duma of Russia had passed the "Digital Currency and Digital Rights" bill in its first reading.

According to CoinDesk, Kraken stated that it has submitted 56 million cryptocurrency transaction tax forms to the IRS for the 2025 tax year, of which approximately 18.5 million correspond to amounts below $1, 74% are below $50, and only 8.5% exceed $600.Kraken pointed out that the lack of a minimum amount tax exemption rule for cryptocurrency payments, as well as the taxation of staking rewards as ordinary income at the time of receipt, is placing a heavy reporting burden on investors. Kraken is calling on the U.S. Congress to promote a broader minimum amount tax exemption policy linked to inflation and to allow taxpayers to choose to be taxed on staking rewards at the time of receipt or sale.

Uzbekistan President Shavkat Mirziyoyev signed a decree to establish the "Besqala Mining Valley" cryptocurrency mining special zone, aimed at developing green energy mining and attracting international investment.Miners can sell cryptocurrency assets on local and overseas exchanges, with profits directly entering local bank accounts. In terms of policy, participants in the mining area are exempt from income tax until 2035 and only need to pay a management fee of 1% of their income; the electricity price is set at 1800 som per kilowatt-hour, with preferential exceptions for investment projects over 100 million dollars. In terms of access, only locally registered companies can apply, and they must have power facilities and pass approval, with relevant responsible persons not having a record of economic crimes.

According to market news, the Korean National Tax Service has issued a tender announcement, planning to introduce cryptocurrency transaction tracking software from institutions such as Chainalysis and TRM Labs to monitor cryptocurrency transaction records in real-time, track hidden assets of suspected tax evaders, and combat tax evasion behaviors through disguised inheritance, gifting, and offshore tax evasion using cryptocurrency.The system can track approximately 70 million types of cryptocurrencies, including Bitcoin, Ethereum, XRP, and stablecoins, covering 45 blockchain layers. It also has the capability to identify "mixing" money laundering techniques with its "de-mixing" ability and can perform a certain degree of identity recognition for non-custodial wallets such as MetaMask and Phantom. This is the third time the National Tax Service has introduced related solutions since 2024, with plans to complete system construction in June and officially put it into use starting in July.

According to The Block, the Washington think tank Cato Institute published an article criticizing the current Bitcoin tax policy in the United States. Researcher Nick Anthony pointed out that the current tax framework treats Bitcoin as "property" rather than "currency," requiring users to calculate capital gains or losses for each transaction individually, even for everyday small purchases. This makes tax reporting extremely cumbersome and effectively hinders the adoption of Bitcoin as a payment tool.In response, the Cato Institute proposed several reform suggestions, including completely eliminating the capital gains tax on cryptocurrency payments and introducing a tax-free threshold for small transactions. The report also mentioned the existing "Virtual Currency Tax Fairness Act," which aims to exempt cryptocurrency transactions under $200, but Anthony believes this threshold is too low to cover the actual spending levels of consumers. Currently, the Trump administration has expressed support for establishing a small tax exemption for cryptocurrency transactions and will continue to evaluate related legislative options.

According to Cointelegraph, the Cato Institute, a U.S. think tank, released a report stating that the U.S. government should eliminate the capital gains tax on Bitcoin and other cryptocurrencies to make it easier for cryptocurrencies to be used as everyday currency and to promote fair competition among different currencies.Currently, U.S. tax law treats Bitcoin as a capital asset, triggering a taxable event when users pay for goods or services with Bitcoin, requiring the calculation and reporting of capital gains. This results in even small everyday purchases potentially generating hundreds of pages of tax documents, significantly increasing the compliance burden. Cato aims to remove the current U.S. tax policy barriers to the use of cryptocurrencies as currency. Cato researcher Anthony emphasized, "Congress should simplify the tax code so that ordinary Americans can easily fulfill their obligations, which will greatly alleviate the pressure of tax season and create a more competitive economic environment."According to a 2025 survey, 39% of U.S. cryptocurrency holders have used crypto assets to purchase goods and services, and currently, about 11,000 merchants worldwide accept Bitcoin payments.