Abstract

This article summarizes key tax and regulatory developments in the global crypto assets industry during the second half of Jan. 2026.

On the tax front, the Hong Kong Securities and Futures Professionals Association (HKFSPA) expressed support for implementing the OECD’s Crypto-Asset Reporting Framework (CARF), while urging regulators to adopt flexible local arrangements to manage industry compliance costs. Meanwhile, the European Commission initiated formal procedures against 12 EU member states, pressing for the full implementation of crypto-asset tax transparency and information-exchange rules to strengthen cross-border tax enforcement.

On the regulatory front, South Korea’s National Assembly passed amendments to the Act on Reporting and Using Specified Financial Transaction Information, raising licensing thresholds for virtual asset service providers and extending regulatory scrutiny to controlling shareholders. In the UK, the government called on banks to stop restricting services to compliant crypto firms as part of its digital-asset strategy, while the Financial Conduct Authority (FCA) advanced its final consultation on crypto regulation. Belarus established a legal framework for crypto banks by presidential decree, integrating digital asset activities into the financial system. In parallel, Japan continued to advance regulatory arrangements for crypto ETFs, and Latin America’s largest digital bank, Nubank, secured U.S. approval to establish a national bank, underscoring the growing integration of crypto-related activities into mainstream financial supervision.

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Part I Tax

1. Hong Kong Securities & Futures Professionals Association (HKSFPA) pushes to soften CARF rules (1.18)

The Hong Kong Securities & Futures Professionals Association (HKSFPA) has urged the city’s government to soften some elements of its planned implementation of the OECD’s crypto reporting standards, backing the CARF and tougher tax transparency but calling for lighter treatment and more flexible recordkeeping. Click here to read the original article

2. European Commission Presses Member States to Enforce Crypto Tax Transparency Rules （1.31）

The European Commission issued formal notices to 12 EU member states for failing to fully implement the new crypto-asset tax transparency and information exchange rules under the amended Directive on Administrative Cooperation, requiring crypto asset service providers to collect and share detailed user and transaction data with tax authorities to combat tax fraud and evasion. The Commission gave the member states two months to respond and comply with the letter of notices. Click here to read the original article

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Part II Supervision

1. South Korea tightens crypto licensing rules for exchanges and shareholders (1.29)

South Korea’s National Assembly has approved amendments to the Act on Reporting and Using Specified Financial Transaction Information, tightening the country’s crypto licensing regime by raising entry requirements for virtual asset service providers (VAPs) and extending regulatory scrutiny to controlling shareholders. The revised framework, adopted at a plenary session, is expected to take effect six months after enactment as part of Korea’s broader AML oversight of digital assets. Click here to read the original article

2. UK government says banks need to stop blocking crypto firms if the country wants to become a digital hub（1.29）

As British banks stand accused of blocking millions of customers from accessing legal digital asset services, the UK Treasury has publicly urged banking institutions to treat FCA-licensed crypto firms fairly and to stop blocking or restricting their access to banking services, asserting that discriminatory banking practices undermine the government’s strategic aim of positioning the United Kingdom as a global digital asset hub. Click here to read the original article

3. Belarus Moves to Establish Legal Framework for Crypto Banks (1.16)

Belarus has taken a significant step toward integrating digital assets into its regulated financial system after President Alexander Lukashenko signed Decree No. 19 formalizing a legal framework for crypto banks. The decree defines a crypto bank as a joint-stock company authorised to combine digital token operations with traditional banking, payment and related financial services. Under the new framework, these banks will be able to offer products that integrate blockchain-based instruments alongside conventional financial operations. Click here to read the original article

4. U.K. FCA seeks feedback on further rules for cryptoasset firms（1.23）

The UK Financial Conduct Authority (FCA) has launched a final stage consultation on detailed regulatory rules for cryptoasset firms, seeking industry feedback on how core standards — including the Consumer Duty, conduct standards, redress and safeguarding, and the treatment of international cryptoasset firms — should apply to crypto businesses. This consultation is part of the FCA’s crypto roadmap, with a deadline for feedback of 12 March 2026. Click here to read the original article

5. Japan's first ETFs investing in cryptocurrencies could list as early as 2028（1.26）.

Japan’s Financial Services Agency plans to add cryptocurrencies to the list of specified assets for exchange-traded funds (ETFs), allowing cryptocurrency-based ETFs to trade as early as 2028, giving retail investors easier exposure to bitcoin and other digital tokens that big institutions are already putting in their portfolios. Click here to read the original article

6. Latin America’s Biggest Digital Bank Secures U.S. Regulatory Approval for National Bank Charter (1.29)

Brazil-based Nu Holdings (Nubank) has received conditional approval from the U.S. Office of the Comptroller of the Currency to establish a national bank (Nubank, N.A.), which, once fully authorized with FDIC and Federal Reserve clearance, will be able to offer deposit accounts, loans, credit cards and digital asset custody services in the U.S. under a comprehensive federal charter. Click here to read the original article.

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