‍Abstract

This report summarizes the key global developments in taxation and regulation within the crypto industry during the first half of November 2025.

On the tax front, the U.S. Internal Revenue Service (IRS) issued Revenue Procedure 2025-31, establishing a crucial safe harbor for ETPs participating in digital asset staking.

Regarding regulation, various national regulatory bodies have advanced structural regulation and taken enforcement actions. In Asia, Japan's Financial Services Agency (FSA) launched a Payment Innovation Project to support the joint issuance of a Yen stablecoin by the country's three major banks. Hong Kong police initiated enforcement actions, commencing the first round of prosecutions in the HK$1.6 billion JPEX crypto trading platform fraud case. Additionally, a Dubai court issued a freezing order on $456 million in assets related to TrueUSD issuer Techteryx. In Europe, the Central Bank of Ireland fined Coinbase $24.6 million for ineffective anti-money laundering measures. Simultaneously, the Bank of England launched a public consultation process on systemic stablecoin issues, proposing core measures such as reserve requirements and temporary holding limits. In the United States, Web3 legislative progress accelerated, with U.S. senators proposing a cryptocurrency bill draft that aims to shift cryptocurrency regulatory authority from the SEC to the CFTC. In South America, the Central Bank of Brazil (BCB) announced a regulatory framework for Crypto Service Providers (VASPs), setting a capital threshold of up to $7 million. The President of Brazil submitted a decree draft to Congress proposing the sale of seized Bitcoin to undermine organized crime networks.

Part One: Tax

1. November 11: U.S. Releases Guidance on Crypto Staking Safe Harbor

The U.S. Internal Revenue Service (IRS) issued Revenue Procedure 2025-31, establishing a crucial safe harbor for Crypto Exchange-Traded Products (ETPs) participating in digital asset Staking. This guidance provides a clear path for ETPs to stake digital assets and share the rewards with retail investors.Access the original document.

Part Two: Regulation

2. November 6: Hong Kong Charges 16 Individuals in HK$1.6 Billion Crypto Trading Platform JPEX Fraud Case

The Commercial Crime Bureau (CCB) of the Hong Kong Police Force filed charges against 16 suspects allegedly involved in the JPEX fraud case, accusing them of conspiracy to defraud, money laundering, and perverting the course of justice, among other crimes, with 7 individuals granted bail. This is the first round of prosecutions in the JPEX fraud case, which is the largest financial fraud case in Hong Kong's history, involving an amount up to HK$1.6 billion. INTERPOL has issued Red Notices for three core members who are fugitives.Access the original document.

3. November 6: Central Bank of Ireland Fines Coinbase $24.6 Million for Anti-Money Laundering Measures

The Central Bank of Ireland announced on November 5, 2025, that it had fined Coinbase Europe Limited €21,464,734 (approximately $24.6 million) for violating Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) transaction monitoring obligations between 2021 and 2025. In response, Coinbase admitted to the violations and reached a settlement with the regulator.Access the original document.

4. November 7: Japan’s FSA to Support Joint Issuance of Yen Stablecoin by Three Major Banks

Japan's Financial Services Agency (FSA) published an announcement regarding the establishment of the "FinTech Proof-of-Concept Center" and the launch of the "Payment Innovation Project (PIP)". Concurrently, it approved the joint issuance of a Yen stablecoin by the three major banks (Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho) alongside several large enterprises.Access the original document.

5. November 10: Bank of England Launches Public Consultation on Regulating Systemic Stablecoins

The Bank of England (BoE) released a consultation paper on November 10, proposing a regulatory mechanism for systemic Pound sterling-denominated stablecoins. Core measures include managing holding limits and mandatory configuration of reserve assets, aiming to guarantee public trust while promoting payment innovation. The consultation period will last until February 10, 2026, with final rules expected to take effect in the second half of 2026.Access the original document.

6. November 11: U.S. Senators Propose Cryptocurrency Bill Draft to Shift Regulatory Authority to CFTC

Two U.S. senators proposed a bipartisan bill (crypto bill draft) that aims to transfer cryptocurrency regulatory authority from the U.S. Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). According to the bill draft, the powers granted to the CFTC include regulating market structure, classifying the majority of cryptocurrencies as digital commodities, and formulating new information disclosure rules.Access the original document.

7. November 11: Central Bank of Brazil Unveils Crypto Service Provider Regulatory Framework, Sets Capital Threshold of up to $7 Million

The Central Bank of Brazil (BCB) published Resolutions No. 519, No. 520, and No. 521 (BCB: 519, 520, 521), requiring Crypto Service Providers (VASP) to obtain a license and setting a maximum capital requirement of $7 million for them. This regulatory framework will also integrate crypto activities into the foreign exchange regulatory system, mandating the reporting of international transactions. The new rules will take effect on February 2, 2026, and existing businesses must complete compliance within nine months.Access the original document.

8. November 13: Dubai Court Freezes $456 Million in Assets Related to TrueUSD Issuer Techteryx

On November 13, 2025, the Dubai Digital Economy Court issued a global freezing order on $456 million in funds related to TrueUSD stablecoin issuer Techteryx, due to allegations that reserve funds were improperly transferred to Dubai company Aria Commodities. The court found signs of a breach of trust. The case regarding the TrueUSD reserve fund defense achieved a breakthrough.Access the original document.

9. November 13: Brazil Proposes Selling Seized Bitcoin to Undermine Organized Crime Networks

The President of Brazil submitted Bill 5,582/2025 to Congress, which would authorize financial institutions to preemptively sell seized cryptocurrencies before a trial outcome is reached. The handling method would be the same as for foreign exchange, checks, and securities. The bill is part of the "anti-faction bill," aiming to dismantle the financial infrastructure of organized crime groups.Access the original document.