Abstract

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

On the taxation front, the UK’s HM Revenue & Customs has increased enforcement by sending 65,000 'nudge letters' to investors suspected of underreporting or evading crypto taxes. Norway has reported a sharp rise in cryptocurrency tax declarations, a 30% increase from the previous year.

On the regulatory front, the Bank of England has stated that proposed limits on stablecoin holdings and transaction sizes will be temporary. France’s Prudential Supervision and Resolution Authority is conducting anti-money laundering checks on several exchanges, including Binance and Coinbase. Japan’s Financial Services Agency is considering allowing banks to purchase and hold cryptocurrency, as well as registering bank groups as exchange operators. British Columbia has passed a new bill, which may grant it the authority to declare a ban on new crypto mining grid connections from autumn 2025 onwards, in order to safeguard the electricity supply. The UK’s Financial Conduct Authority has taken legal action against entities associated with HTX for unlawfully promoting cryptocurrency services. The EU has approved extensive new sanctions, which will tighten restrictions on Russian banks and cryptocurrency exchanges. Kyrgyzstan ordered the launch of a KGST stablecoin, proposals for a state crypto reserve, and pilot testing of a digital som platform.

Part I Tax

1. UK HM Revenue & Customs (HMRC) Steps Up Pursuit of Unpaid Tax on Crypto Gains (10.19)

HM Revenue & Customs (HMRC) has intensified its scrutiny of the crypto sector, sending 65,000 “nudge letters” to investors suspected of underreporting or evading taxes on digital assets, more than double last year’s figure. Click here to read the original article  

2. Norway Sees 30% Surge in Crypto Tax Reporting (10.28)

According to recent figures from the Norwegian Tax Administration, the number of people who reported owning cryptocurrency in their tax returns increased by over 30 percent last year. Click here to read the original article  

Part II Supervision

1. Bank of England clarifies plan to limit stablecoins is temporary (10.15)

Bank of England Deputy Governor Sarah Breeden has clarified that the central bank’s plan to restrict stablecoin holdings and transaction size will only be a temporary measure to ensure stability in the financial system. Click here to read the original article.

2. France Hits Binance and Coinbase with Money-Laundering Checks (10.17)

The French Prudential Supervision and Resolution Authority (ACPR) is carrying out controls on dozens of exchanges, including Binance and Coinbase, to verify their compliance. Click here to read the original article

3. Japan Regulator to Consider Allowing Banks to Buy and Hold Crypto (10.19)

The Japanese Financial Services Agency (FSA) is considering allowing banks to purchase and hold digital currencies for investment. It is also considering allowing bank groups to register as cryptocurrency exchange operators and offer trading and exchange services. Click here to read the original article.

4. British Columbia authority may have the power to Permanently Ban New Crypto Mining Projects From Grid (10.20)

The Canadian province of British Columbia is planning to pass a new bill to grant the authority the power to decide whether to supply electricity to listed projects. Based on this bill, The authority may permanently prohibit new BC Hydro connections to the electricity grid for cryptocurrency mining in the fall of 2025, to preserve the province’s electricity supply and avoid the overburdening of the electricity grid. Click here to read the original article

5. UK Sues Crypto Exchange HTX for Unlawful Promotion of Crypto Assets (10.22)

The United Kingdom’s Financial Conduct Authority (FCA) has filed a lawsuit against several entities connected to the digital asset exchange HTX, accusing the platform of unlawfully promoting crypto asset services to consumers in the United Kingdom. Click here to read the original article

6. E.U. Approves Sweeping Sanctions Targeting Russian Crypto Exchanges (10.23)

The European Union has approved a sweeping new package of sanctions against Russia, tighten restrictions on banks and cryptocurrency exchanges. Click here to read the original article

7. Kyrgyzstan President instructs to launch KGST stablecoin and start digital som testing (10.24)

The Kyrgyzstan Secretariat of the National Council for the Development of Virtual Assets and Blockchain Technologies is to ensure the launch of the KGST stablecoin and consider its listing on international platforms within two months, to submit proposals for the creation of a state cryptocurrency reserve. And the National Bank is to begin pilot testing of the digital som platform. Click here to read the original article

Recommended Reading

1. Behind Turkey's Crypto Asset System Shift: An Overview of Taxation and Regulatory Systems  

2. From Fragmented Rules to a Coherent System: Understanding the EU’s MiCAR Framework

3. Behind the Tax Investigation of Hundreds of Binance Users: An Overview of India's Crypto Asset Taxation and Regulatory System

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