‍Abstract

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

On the taxation front, the Arizona legislators have introduced bills seeking to exempt virtual currency from state taxes and prevent local governments from taxing blockchain node operators. Japan's ruling coalition has adopted tax reform guidelines for fiscal 2026, exploring the classification of crypto assets alongside traditional financial products and the potential application of separate taxation for gains from spot trading, derivatives, and crypto-related ETFs.

On the regulatory front, the UK's Financial Conduct Authority is seeking feedback on proposals for UK crypto rules. Meanwhile, the US SEC has issued a statement on the custody of crypto asset securities by broker-dealers, which provides greater clarity on the application of the federal securities laws to crypto asset securities. Russia's central bank has drafted a regulatory concept treating digital currencies as currency assets and aims to establish a legal framework by mid-2026, with leading exchanges prepared to launch regulated trading thereafter. Hong Kong has concluded consultations on licensing regimes for virtual asset dealers and custodians. Additionally, Ghana has legalized cryptocurrency trading through new legislation, and Kyrgyzstan has launched a national stablecoin listed on Binance.

Part I Tax

1. Arizona Lawmaker Proposes Barring Taxes on Crypto and Blockchain (12.19)

Arizona state Senator proposed amending state statutes to exempt virtual currency from taxation (SB 1044), barring counties, cities and towns from taxing or fining entities running blockchain nodes (SB 1045), and amending the state constitution’s definition of property taxes to clarify rules on digital assets (SCR 1003). Click here to read the original article

2. Japan's Ruling Coalition Adopts Tax Reform Guidelines: Separate Taxation Under Consideration (12.19)

Japan's ruling coalition parties have adopted tax reform guidelines for fiscal 2026. The guidelines explores classifying crypto assets alongside traditional financial products such as stocks and investment funds. And it is possible to applicate separate taxation to gains from spot crypto trading, derivatives transactions, and crypto-related exchange-traded funds (ETFs). Click here to read the original article

Part II Supervision

1. The UK FCA Seeks Feedback on Proposals for UK Crypto Rules (12.16)

The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets including exchanges, staking, lending and DeFi. Under the proposals, exchanges would face clearer standards regarding admissions, disclosures and trading integrity. Click here to read the original article

2. SEC Provides Statement on the Custody of Crypto Asset Securities by Broker-Dealers (12.17)

The U.S. Securities and Exchange Commission has issued a statement on the custody of crypto asset securities by broker-dealers, which provides views on the application of Rule 15c3-3(b)(1) to crypto asset securities.. While the rule requires broker-dealers to maintain physical possession or control of customer securities, the SEC clarifies that it will not object to a broker-dealer deeming itself to have such physical possession, provided the firm implements the specific protective measures. Click here to read the original article

3. Ghana Legalises Cryptocurrency Trading with Passage of New Law (12.21)

Ghana has formally legalized cryptocurrency trading after parliament passed the Virtual Asset Service Providers Bill into law. The new legislation provides a formal regulatory framework to supervise virtual asset activities and manage the risks associated with digital currencies. Click here to read the original article

4. Bank of Russia has Devised a Concept of Cryptocurrency Regulation (12.23)

The Bank of Russia has devised a concept of cryptocurrency regulation in the Russian market. According to the concept, crypto assets will be accessible to both qualified and non-qualified investors with different rules. Digital currencies and stablecoins are classified as currency assets, may be purchased and sold, but may not be used to make payments inside Russia. The related legal framework is to be drafted before 1 July 2026.  Click here to read the original article.

5. Russia’s Top Stock Exchange Plan to Launch Crypto Trading by 2026 (12.23)

Moscow Exchange and St. Petersburg Exchange have confirmed readiness to launch regulated crypto trading once Russia’s legislative framework takes effect by mid-2026. Click here to read the original article

6. Hong Kong Proceeds with Licensing Regimes for Virtual Asset Dealers and Custodians (12.24)

The Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have concluded consultations on proposed licensing regimes, which would require firms providing crypto dealings or custody services in Hong Kong to obtain licenses once the framework takes effect. Click here to read the original article

7. Kyrgyzstan Launches National Stablecoin (12.25)

Kyrgyzstan President Sadyr Japarov said a recently launched stablecoin ($KGST) pegged to the country’s fiat currency has been listed on cryptocurrency exchange Binance. In September, Kyrgyzstan advanced legislation aimed at creating a state crypto reserve and expanding the country’s digital asset industry. Click here to read the original article.