Abstract

This article summarizes key tax and regulatory developments in the global crypto assets industry during the second half of August 2025.

Taxation: Both the U.S. and Japan are showing signs of tax policy reform. New York State plans to impose a 0.2% transaction tax, while Japan intends to introduce a flat 20% tax rate in 2026 and allow loss carryforwards.

Accounting: U.S. GAAP rules indirectly triggered a decline in SharpLink’s stock price. The rules caused a disconnect between the book value and market value of crypto assets, leading SharpLink to record an $88 million impairment on its staked ETH assets, resulting in significant non-cash losses and a stock price drop.

Regulation: Several countries are refining their crypto regulatory frameworks. Thailand launched a sandbox for crypto payments in tourism; Illinois passed two crypto regulatory bills; U.S. banking regulators will address state-level stablecoin rules; Australia is auditing Binance’s anti-money laundering compliance; the U.S. plans to allow foreign re-entry, with Japan Post Bank planning to launch a digital currency exchange in 2026; and the Bank of Korea proposed central bank support for stablecoins.

Part I Tax

New York State Plans to Introduce A 0.2% Crypto Consumption Tax.

(8.16)

New York State Assemblyman Phil Steck has introduced a bill proposing a 0.2% consumption tax on all cryptocurrency transactions statewide. The tax would apply to NFTs, mined and staked digital assets, as well as stablecoins. Currently, eight states—including New York and California—treat cryptocurrency as cash equivalents for tax purposes and already levy capital gains, gift, and estate taxes on digital assets.Click here to read the original article

Japan's 2026 Tax Reform Proposes Lower Crypto Taxation (8.27)

Japan's Financial Services Agency (FSA) has proposed a tax reform plan for 2026, aiming to implement more favorable tax policies for cryptocurrencies. Under the current system, crypto asset earnings are subject to a top tax rate of up to 55%. The new proposal seeks to replace this with a flat 20% tax rate and introduce a three-year loss carryforward mechanism, aligning with the rules applied to stock investments. This move is expected to indirectly create a more friendly investment environment for digital assets by offering tax incentives.Click here to read the original article

Part II Accounting

U.S. GAAP Rules Cause SharpLink’s Stock to Drop 12%  Due to Q2 Crypto Impairment（8.18）

SharpLink Gaming, an online gaming firm, announced its Q2 2025 results. It is the second-largest corporate holder of Ethereum, with 728,800 ETH (around $3.5 billion).The company reported a net loss of $103.4 million—over 25,000 times worse than the previous year. This accounting loss caused a 12.58% single-day stock decline.$87.8 million of the loss came from unrealized impairment of its liquid staked ETH (LsETH). Under U.S. GAAP, the company must value LsETH at the quarter’s lowest market price ($2,300), not actual sale value.

GAAP treats LsETH as a “digital intangible asset,” requiring cost-based booking and impairment write-downs. Despite some recovery in ETH's market price, these rules resulted in a major non-cash loss.Click here to read the original article

Part Ⅲ Supervision

Thailand to Launch Tourist Crypto Payment Sandbox in Q4(8.18)

Thailand’s SEC, Ministry of Finance, Anti-Money Laundering Office, and Ministry of Tourism and Sports will launch the “TouristDigiPay” sandbox in Q4 2025. The 18-month pilot allows foreign tourists to convert cryptocurrency into Thai baht for electronic spending within the country. Direct crypto payments are not supported—merchants will receive baht only. Users face monthly spending limits and cannot withdraw cash. Click here to read the original article ‍

Illinois Governor Blasts Trump’s ‘Crypto Bros’ in New Bill Signing(8.19)

Illinois Governor JB Pritzker has signed two digital asset bills into law: the Digital Assets and Consumer Protection Act (SB 1797) and the Digital Asset ATM Act (SB 2319).The first empowers state regulators to supervise crypto businesses, requiring robust finances and cybersecurity.The second imposes rules on crypto ATMs, including mandatory registration, full scam refunds, an 18% fee cap, and a $2,500 daily limit for new users.Click here to read the original article

U.S. Banking Regulators Will Begin Addressing State-Level Stablecoin Regulations(8.20)

The U.S. Stablecoin Certification Review Committee is evaluating whether state-level regulatory frameworks are "substantially similar" to federal standards for stablecoin issuance. Chaired by the Treasury Secretary and including the Chairs of the Federal Reserve and FDIC, the committee must reach a unanimous decision to grant federal approval to state jurisdictions.Click here to read the original article

Australia Orders Anti-Money Laundering Audit of Binance’s Local Unit(8.22)

AUSTRAC has directed Binance’s Australian subsidiary to undergo an external independent audit. The move follows the identification of “serious deficiencies” in the platform’s anti-money laundering (AML) and counter-terrorism financing (CTF) controls. The audit will fully examine Binance Australia’s compliance systems and transaction monitoring mechanisms. Binance has pledged full cooperation and emphasized that the review is a standard regulatory procedure, not a punitive action.Click here to read the original article

US CFTC Clarifies Registration Framework for Foreign Exchanges （8.28）

The CFTC’s Division of Market Oversight has issued guidance clarifying the registration system for Foreign Boards of Trade (FBOTs). This allows legally established overseas platforms to provide direct market access to U.S. users. Acting Chair Caroline Pham noted the move corrects the previous “regulation-by-enforcement” approach that drove trading activities abroad, offering a compliant return path for crypto firms that relocated overseas. The framework applies to all asset classes, including digital assets.Click here to read the original article  

Japan Post Bank Plans Digital Currency to Revitalize $1.3tn in Deposits （8.31）

Japan Post Bank will launch its digital currency DCJPY by 2026 to improve liquidity across its $1.3 trillion in deposits using blockchain technology.The currency will complement traditional deposits and requires regulatory coordination with Japan’s Financial Services Agency and the Bank of Japan.The initiative could set a precedent for traditional banks adopting digital assets, potentially transforming Japan’s financial sector. Its success hinges on user adoption and smooth integration, especially among retail and corporate customers new to digital currency.Click here to read the original article  

Recommended Reading

1. Trillions in Pensions Pouring into Crypto? The Start of a Massive Gamble

2. A Rising star on the Stablecoin Block: The Rise and Controversy of USD1

3. When Traditional Auditing Meets Crypto Assets: How Companies Can Tackle On-Chain Auditing Challenges