‍Abstract

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

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In terms of taxation, Japan's Financial Services Agency (FSA) is reforming its cryptocurrency regulatory framework, proposing to uniformly impose a 20% capital gains tax on certain cryptocurrencies. Brazil plans to include cross-border cryptocurrency payments in the scope of its Imposto sobre Operações Financeiras (IOF) tax. A U.S. House of Representatives bill intends to allow tax residents to pay federal taxes with Bitcoin, boosting U.S. Bitcoin reserves. The UK proposes to adopt a "no loss no gain" tax rule for DeFi lending and liquidity pool transactions.

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In terms of regulation, the U.S. has approved banks to hold cryptocurrencies on their balance sheets for paying blockchain network fees. South Korea is advancing sanctions against cryptocurrency exchanges that fail to fulfill anti-money laundering (AML) obligations. Japan plans to implement a mandatory liability reserve system for cryptocurrency exchanges to enhance investor protection. Australia has introduced new regulatory rules for cryptocurrency platforms, proposing to fully bring cryptocurrency trading and custody platforms into the financial services regulatory regime. The UAE has enacted a new central bank law, incorporating digital assets and decentralized finance (DeFi) into the traditional banking regulatory framework. Turkmenistan has adopted the Digital Asset Regulation Act, clarifying its crypto regulatory framework. South Korea has expanded the "travel rule" for crypto asset transactions to cover transfers below 1 million won (approximately 680 US dollars), intensifying AML supervision.

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Part One: Tax

1. November 16^th: Japan Plans to Reclassify 105 Cryptocurrencies as Financial Products, with Tax Rate Potentially Reduced to 20%

Japan's Financial Services Agency (FSA) plans to reclassify 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products and bring them under the regulatory scope of the Financial Instruments and Exchange Act. Currently, cryptocurrency income in Japan is taxed as "miscellaneous income," and traders may face a tax rate of up to 55%. After the reclassification, the aforementioned cryptocurrency gains will be taxed as capital gains, with the tax rate potentially reduced to a fixed 20%—on par with the tax rate for stock trading. Access the original document

2. November 18^th: Brazil Plans to Impose Taxes on Cross-border Cryptocurrency Payments

Sources stated that Brazil's Ministry of Finance is considering expanding the scope of its Imposto sobre Operações Financeiras (IOF) tax to include certain cross-border transfers using virtual assets and stablecoins, which were classified as foreign exchange transactions by the central bank this month. Access the original document

3. November 20^th: A U.S. House of Representatives Bill Proposes Allowing Federal Taxes to be Paid with Bitcoin

Warren Davidson, a Republican U.S. Representative from Ohio, has introduced the Bitcoin for America Act, which allows Americans to pay federal taxes with Bitcoin and deposits all such funds directly into the Strategic Bitcoin Reserve. Access the original document

4. November 26^th: The UK Proposes to Introduce a "No Loss No Gain" Tax Rule for DeFi Lending and Liquidity Pool Transactions

HM Revenue and Customs (HMRC) has proposed a "no loss no gain" tax rule for DeFi lending and liquidity pool transactions, deferring capital gains tax until a "transfer of assets with substantive economic significance" occurs. The move aims to align tax rules with the actual operation of DeFi. Access the original document

Part Two: Regulation

5. November 18^th: The U.S. Permits Banks to Hold Cryptocurrencies on Balance Sheets to Cover Blockchain Network Gas Fees

The Office of the Comptroller of the Currency (OCC) has issued Interpretive Letter 1186, explicitly allowing national banks to hold cryptocurrencies on their balance sheets as principal, specifically for paying transaction fees (gas fees) on blockchain networks. The OCC also stated that such activities must be conducted in a safe and sound manner and comply with applicable legal requirements. Access the original document

6. November 24^th: South Korea will Impose Sanctions on Multiple Cryptocurrency Exchanges

South Korea's Financial Intelligence Unit (FIU) is expected to continuously impose sanctions on violations of anti-money laundering (AML) obligations by the country's cryptocurrency exchanges. Following the completion of penalties against Dunamu (operator of Upbit), the FIU plans to take sequential action against other exchanges including Korbit, Gopax, Bithumb, and Coinone. South Korea has completed on-site inspections of the aforementioned exchanges since last year, and is currently in the phase of legal review and sanction deliberation. Access the original document

7. November 25^th: Japan Plans to Implement a Mandatory Liability Reserve System for Cryptocurrency Exchanges

Japan's Financial Services Agency (FSA) plans to submit a bill to parliament in 2026, requiring cryptocurrency exchanges to set aside liability reserves to compensate affected users in the event of losses caused by cyberattacks or other security incidents. Access the original document

8. November 26^th: Australia Introduced New Regulatory Rules for Cryptocurrency Platforms

Treasurer of Australia Jim Chalmers and Minister for Financial Services Daniel Mulino have formally submitted the Corporations Amendment (Digital Assets Framework) Bill 2025 to the Australian Parliament, proposing to fully bring cryptocurrency trading and custody platforms into the financial services regulatory regime. The bill mandates that cryptocurrency trading platforms and custody service providers must obtain an Australian Financial Services License (AFSL) and be subject to primary regulation by the Australian Securities and Investments Commission (ASIC). Access the original document

9. November 27^th: The UAE Brought Cryptocurrencies and DeFi under the Regulatory Scope of Central Bank

The United Arab Emirates (UAE) has announced Federal Decree No. 6 of 2025, which was signed in September, formally incorporates digital assets and DeFi into the banking regulatory framework. The decree empowers the Central Bank of the UAE (CBUAE) to implement licensing oversight for all cryptocurrency and blockchain-related entities operating within the UAE or targeting the UAE market. It also establishes a one-year compliance transition period for the industry, requiring relevant entities to complete licensing adjustments by September 2026. Access the original document

10. November 28^th: Turkmenistan Adopted the Digital Asset Regulation Act

The President of Turkmenistan has signed and promulgated the Digital Asset Regulation Act. This act systematically formulates legal norms for the creation, issuance, trading and other links of crypto assets for the first time, and establishes a licensing system for crypto mining enterprises, crypto exchanges and relevant service providers. The act will officially take effect on January 1, 2026. Access the original document

11. November 28^th: South Korea Expanded the Crypto "Travel Rule" to Cover Transactions below one Million Won

Lee Eui-yong, Chairman of South Korea's Financial Services Commission (FSC), announced that the scope of the "travel rule" for crypto asset transactions will be expanded to cover small-value transfers below one million won (approximately 680 US dollars). He emphasized that authorities will crack down harshly on money laundering in the crypto sector and further strengthen anti-money laundering (AML) supervision. Access the original document