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This article summarizes key tax and regulatory developments in the global crypto assets industry during the second half of May 2025.
On the tax front, countries are continuing to adjust their approaches to the taxation of crypto assets, including changes to reporting requirements, tax rates, and policy direction. The UK government has confirmed it will implement new crypto tax data-sharing rules in line with the OECD’s Crypto Asset Reporting Framework (CARF), aligning with international standards on tax transparency. In Finland, the number of taxpayers reporting crypto transactions has nearly doubled. In Australia, tax authorities have clarified that a recent court ruling does not grant crypto assets tax-exempt status. Florida is considering eliminating capital gains tax on Bitcoin. Meanwhile, India’s crypto industry is actively lobbying the government for reduced tax rates.
On the regulatory front, several jurisdictions have made notable progress in shaping their crypto policy frameworks. In the U.S., the Senate is advancing the GENIUS Act aimed at regulating stablecoins, while Hong Kong has passed its own stablecoin legislation. Beginning in June, South Korea will enforce stricter KYC rules and allow exchanges to legally offer token sales. Concurrently, the U.S. Department of Justice is investigating a data breach involving Coinbase, the SEC has withdrawn its lawsuit against Binance, and the Department of Labor has revised its policy on crypto assets in retirement plans. Thailand and Pakistan are also actively developing their digital asset regulatory regimes.
The UK government has confirmed it will implement new crypto tax data rules under the Organisation for Economic Development’s (OECD) Crypto-Asset Reporting Framework (CARF), aligning with international standards on tax transparency. Cryptoasset service providers (CASPs) operating in the UK must collect user data from 2026 and submit reports starting May 2027. These changes aim to curb tax evasion, strengthen global reporting obligations, and increase accountability in the digital asset sector. The regulations will apply to all CASPs offering exchange, transfer, or custodial services, which will be required to gather identity and transactional data from all users but only report on users who are tax residents in the UK or jurisdictions that have adopted the CARF rules. Click here to read the original article
The number of people in Finland reporting cryptocurrency trading in their tax returns has nearly doubled. In last year’s tax filings, around 16,000 taxpayers in Finland declared having traded cryptocurrencies. The year before, 8,200 people reported such activity to the tax authority. The number of those declaring crypto trades remains relatively small, considering that an estimated 300,000 Finns own cryptocurrencies. Click here to read the original article
Victorian judge’s ruling that Bitcoin is roughly comparable to currency has sparked claims that the cryptocurrency may no longer be taxed — and that investors who previously paid capital gains tax on appreciating tokens could be eligible for refunds. But crypto tax experts say it changes nothing about how Bitcoin is treated under Australian tax law. Click here to read the original article
Recently, the state of Florida introduced a bill that proposes to eliminate the capital gains tax on bitcoin. Click here to read the original article.
India's cryptocurrency industry is actively lobbying the government to cut the 30% capital gains tax and 1% transaction tax that will be in place from 2022. Currently, the high tax burden has resulted in over 90 per cent of crypto transactions going overseas. With Trump's return to the White House and his public support for digital assets, the Indian government's attitude towards the crypto industry has moderated. The frequency of communication between the industry and policymakers has increased from semi-annual to monthly or even weekly. Click here to read the original article.
The Senate made big progress on stablecoin regulation Monday, advancing the GENIUS Act with a bipartisan vote of 66-32. The GENIUS Act is designed to create the first regulatory framework for stablecoin issuers, addressing issues of consumer protection, financial stability, and transparency. This bill, which would regulate stablecoins for the first time at the federal level, marks a key step toward establishing comprehensive oversight for digital currencies pegged to fiat currencies, like the US dollar. Click here to read the original article
The U.S. Department of Justice has launched an investigation into the recent security breach at Coinbase Global. The investigation focuses on how cybercriminals bribed employees and contractors in India to steal sensitive customer data, which was then used in extortion attempts. Coinbase revealed last Thursday that criminals had stolen sensitive customer data and demanded a $20 million ransom from Coinbase or it would release the stolen information. Click here to read the original article
The South Korean Financial Services Commission (FSC) will mandate non-profit organizations and cryptocurrency exchanges to comply with a strict customer verification process from June, and these entities will be allowed to sell crypto assets under the new regulations. Specifically, non-profit organisations can sell crypto assets acquired through donations and sponsorships, and exchanges can realise user fees paid in cryptocurrency. Click here to read the original article
The Legislative Council of Hong Kong has passed the Stablecoin Bill in its third reading on Wednesday, setting the stage for regulated stablecoin issuance in the city. The new legal framework gives Hong Kong a first-mover advantage in Asia’s race to regulate fiat-backed stablecoins under a unified licensing model. Click here to read the original article
In a landmark move to embrace the future of finance, the Ministry of Finance has announced the initiation of a comprehensive strategy to regulate digital assets and accelerate the growth of Pakistan’s virtual asset economy. The government has endorsed the establishment of a dedicated body — the Pakistan Digital Assets Authority (PDAA) —to oversee licensing, compliance, and innovation within the crypto asset ecosystem and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and DeFi applications. Click here to read the original article
The Securities and Exchange Commission (SEC) of Thailand has clarified that the upcoming G-Token cannot be used as a means of payment and the intention is not that it be traded speculatively like other cryptocurrencies. G-Token is a new digital financial instrument to be issued by the Public Debt Management Office (PDMO) under the Ministry of Finance. It is designed to raise public funds to help offset the government's budget deficit. Jomkwan Kongsakul, deputy secretary-general of the SEC, said the G-Token would be issued through an initial coin offering (ICO) portal selected by the PDMO, with the Finance Ministry serving as the registrar. Click here to read the original article
The U.S. Department of Labor's Employee Benefits Security Administration has rescinded a 2022 compliance release that previously discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans. By rescinding the 2022 guidance, the department reaffirms its neutral stance, neither endorsing, nor disapproving of, plan fiduciaries who conclude that the inclusion of cryptocurrency in a plan’s investment menu is appropriate. Click here to read the original article
The U.S. Securities and Exchange Commission (SEC) has reportedly voluntarily withdrawn its lawsuit against Binance, according to a court filing on Thursday, local time. The U.S. SEC, Binance and lawyers for Binance's founder, Zhao Changpeng, signed a joint withdrawal agreement filed in federal court in Washington, D.C. The SEC charged Binance in 2023 with diverting customer funds in order to inflate trading volumes, failing to restrict U.S. customers' use of Binance's platform and misleading investors about its market oversight controls.The SEC also charged Binance with illegally facilitating trading in several cryptocurrencies, while these cryptocurrencies were considered unregistered securities under previous SEC leadership. Click here to read the original article
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