FinTax Crypto Compliance Highlights—March 2025, Issue 1
Abstract
This article summarizes key tax and regulatory developments in the global crypto assets industry during the first half of March 2025.
On the taxation front, the U.S. and Japan have both introduced tax – friendly policies for crypto assets. Japan’s ruling Liberal Democracy Party advanced a proposal to reduce crypto assets capital gains taxes to 20% while establishing digital assets as a distinct taxable class, pending final legislative approval. In the U.S., Congress moved to revoke IRS reporting requirements for decentralized finance (DeFi) platforms. In tax-related discussions, Vitalik Buterin finds it absurd that “Bitcoin Jesus” Roger Ver was sentenced to life imprisonment for tax crimes. While David Sacks, the US White House’s crypto and AI chief, explicitly opposed levying taxes on crypto transactions.
On the regulatory front, recent developments underscore the fragmented yet dynamic evolution of digital assets regulations as nations weigh market potential against systemic risks. The Swiss National Bank rejected Bitcoin reserves over stability and security concerns, and the Cayman Islands tightened oversight by mandating licenses for crypto custodians and exchanges starting April 2025. Japan, the U.S. and Thailand seem to be more positive. Japan is taking a significant step forward in stablecoin adoption, with SBI VC Trade securing regulatory approval to list Circle’s USDC. In the U.S., President Trump signed an executive order to create a Bitcoin Strategic Reserve for seized assets. Thailand regulator approves Bitcoin, Ether, XRP, XLM and certain tokens used for settlement by the central bank. In India, Coinbase cleared hurdles to re-enter India after securing FIU registration.
Part I Tax
1.Vitalik Buterin: “It is absurd that Roger Ver was sentenced to life imprisonment for non-violent tax crimes.” (3.1)
According to Jinse Finance, Ethereum co-founder Vitalik Buterin published an article stating, “It is absurd that ‘Bitcoin Jesus’ Roger Ver has been sentenced to life imprisonment for tax crimes. The case against Roger Ver appears to have strong political motivations; much like Ross Ulbricht, the founder of the Silk Road anonymous market. Many individuals and companies have been charged with more serious crimes but have faced much lighter sentences than what Roger is facing.” Click here to read the original article
2.Japan’s Ruling Party Moves to Slash Crypto Capital Gains Taxes to 20% (3.6)
Japan’s Liberal Democracy Party (LDP), the ruling party in Japanese politics, is moving ahead with comprehensive regulatory reform on cryptocurrencies that would slash the capital gains tax on crypto to 20% and categorize digital assets as a distinct asset class. These regulatory reforms signal that Japan is opening up to cryptocurrencies following a somewhat cautious approach to digital asset investment in the past, as the country shifts away from encouraging investment in US debt assets. Click here to read the original article
3.US White House’s Crypto and AI Chief Opposed Levying Taxes on Crypto Transactions (3.9)
In a recent episode of the All In Podcast, host Jason Calacanis suggested a 0.01% tax on all US crypto transactions. But David Sacks, the US White House’s crypto and AI chief, disagreed. He warned taxes like this often go beyond their original intent and could place a heavier burden on users. They also debated the roles of Ethereum, Bitcoin, and meme coins. Click here to read the original article
4.US House Follows Senate in Passing Resolution to Kill IRS DeFi Broker Rule (3.12)
On March 11, the US House of Representatives has voted in favor of nullifying a rule that would have required decentralized finance (DeFi) protocols to report to the Internal Revenue Service. The rule would force DeFi platforms, such as decentralized exchanges, to disclose gross proceeds from crypto sales, including information regarding taxpayers involved in the transactions. The resolution will need to pass another Senate vote before being sent to President Donald Trump, who has signaled he’d support it. Click here to read the original article.
Part II Supervision
1.Swiss National Bank Rejects Bitcoin as Reserve Asset Over Stability and Security Concerns (3.2)
Swiss National Bank (SNB) President Martin Schlegel has dismissed the idea of adding Bitcoin to Switzerland’s reserve assets, citing concerns over stability, liquidity, and security risks. He’s stance contradicts a proposal from Swiss Bitcoin nonprofit think tank 2B4CH, which aims to constitutionally mandate the SNB to hold Bitcoin on its balance sheet. Beyond volatility, Schlegel raised concerns over technical vulnerabilities associated with cryptocurrencies, stating that since Bitcoin is software-based, it remains susceptible to bugs and security flaws. Click here to read the original article
2.Japan Opens Doors to Foreign Stablecoins: USDC to Begin Trading on March 12 (3.5)
Japan is taking a significant step forward in stablecoin adoption, with SBI VC Trade securing regulatory approval to list Circle’s USDC. This marks the first time a foreign dollar-pegged stablecoin will be legally distributed in the country. Under Japan’s new payments framework, the exchange will roll out USDC trading, signaling a shift in the nation’s approach to digital assets. USDC’s regulatory approval marks a pivotal moment for Japan’s crypto market and the country is set to become a more favorable environment for digital asset innovation and cross-border transactions. Click here to read the original article
3.President Trump Signs Executive Order Establishing The Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile (3.7)
On Thursday (7 March 2025), US President Donald Trump signed an executive order to establish a Bitcoin Strategic Reserve to hold assets seized by the US government. The order also mandates the creation of a Digital Asset Stockpile for other types of crypto assets. Despite the announcement, Trump’s executive order failed to boost the crypto market. Bitcoin lost about 5% in the past 24 hours, with Ether experiencing a similar drop. Click here to read the original article
4.SEC Halts Lawsuits and Investigations Against 11 Crypto Firms and Individuals (3.7)
According to Jinse Finance, by March 7, the U.S. Securities and Exchange Commission (SEC) had dismissed or suspended lawsuits and investigations against 11 crypto companies and individuals, including Binance (February 10), Coinbase (February 21), OpenSea (February 21), Robinhood (February 24), Uniswap (February 25), Justin Sun (February 26), Consensys (February 27), Kraken (March 3), Yuga Labs (March 4), and DRW (March 4). Some people think the SEC’s changed stance is linked to the Trump administration’s acceptance of some crypto donations, since Coinbase and Robinhood have donated to Trump, with Uniswap also participating in a crypto super PAC, Fairshake, worth $116 million.
5.Thailand Regulator Approves USDT, USDC Stablecoins (3.10)
Thailand’s SEC had previously approved Bitcoin, Ether, XRP, XLM and certain tokens used for settlement by the central bank. It announced the approvals last week after soliciting feedback from the public on proposed regulatory changes that were finalized in February and scheduled to go into effect on March 16. Besides, there have been growing calls within Thailand to legitimize crypto assets usage and urge stablecoin adoption to boost domestic revenue. Click here to read the original article
6.Cayman Islands Updates Crypto Rules: Trading, Custody Providers Must Obtain Licenses (3.10)
The Cayman Islands has updated its crypto regulatory regime, introducing new licensing rules through a legislative amendment. From 1 April 2025, entities offering virtual asset custody and trading platform services in or from the Cayman Islands must obtain a license. The Cayman Islands Monetary Authority (CIMA) will oversee the regulated crypto firms. According to TheBanks.eu, there are currently 17 VASPs registered in the Cayman Islands and supervised by CIMA. These companies include major retail and institutional names such as Blockchain.com, Crypto.com, and B2C2. Click here to read the original article
7.Coinbase Gains FIU Approval for Indian Market Re-entry (3.11)
Coinbase has made progress in returning to India by securing registration with the Financial Intelligence Unit (FIU), the company announced on Tuesday. This registration enables Coinbase to offer its trading services in the Indian market. Click here to read the original article
Recommended Reading
- Corporate Alternative Minimum Tax: A Big Trouble for MicroStrategy
- FinTax Crypto Asset Accounting and Auditing Series (I): Accounting Classification and Treatment of Crypto Assets
- OKX Loses $500 Million? Compliance Is Crucial for Business in the U.S.