Abstract

This report summarizes the key tax and regulatory developments in the global crypto asset industry during the first half of October 2025.

On the tax front, authorities around the world have been increasingly active. In the United States, Roger Ver is reportedly close to reaching a USD 48 million settlement in a high-profile tax fraud case. Meanwhile, New York legislators have proposed a consumption tax on electricity used by crypto miners to address energy and environmental concerns. In India, the tax authorities have launched investigations into more than 400 Binance traders suspected of tax evasion.

On the regulatory front, governments and regulators are focusing on structural oversight and compliance issues. In South Korea, the tax authority has been granted the power to seize cryptocurrencies stored in cold wallets. In Europe, EU moves toward centralized crypto oversight under MiCA. The UK Financial Conduct Authority (FCA) has lifted its four-year ban on crypto exchange-traded notes (ETNs). In the United States, the SEC announced plans to introduce an “innovation exemption” framework to allow blockchain startups to test compliant operations under reduced regulatory burdens. Both Kazakhstan and Dubai have tightened enforcement—Kazakhstan shut down 130 illegal platforms, and Dubai’s VARA imposed fines on 19 unlicensed firms. Meanwhile, the Central Bank of Russia is moving forward with a plan to tokenize domestic equities for foreign investors.

Part I Tax

1. Roger Ver Nears U.S. Tax Fraud Settlement (10.10)

early Bitcoin investor Roger Ver, known as "Bitcoin Jesus," is reportedly close to a $48 million tax settlement with the U.S. Department of Justice. Ver was indicted in 2024 for failing to report capital gains after renouncing U.S. citizenship.Click to read the full article

2. New York State Proposes Excise Tax on Crypto Mining Energy Use (10.10)

State Senator Liz Krueger introduced a bill to impose a tiered excise tax on energy consumption by crypto miners, with rates ranging from 0–5 cents per kilowatt-hour depending on usage levels, while exempting miners using 100% renewable energy. Click to read the full article

3. India Investigates 400 Binance Traders for Alleged Crypto Tax Evasion (10.10)

India's Central Board of Direct Taxes launched a probe into over 400 high-net-worth Binance traders suspected of evading crypto taxes, focusing on peer-to-peer trades settled via local bank accounts or cash. Binance's re-entry into the Indian market in 2024 has enabled authorities to access user data for ongoing investigations.Click to read the full article

Part II Supervision

1. EU Moves Toward Centralized Crypto Oversight Under MiCA (10.6)

ESMA Chair Verena Ross confirmed that the European Commission is preparing to consolidate crypto supervision at the EU level to eliminate fragmented national licensing. The core of the reform is to allow companies that obtain a crypto license in one EU country to operate across the entire EU without needing separate approval from other member states.[Text Wrapping Break]Click to read the full article

2. South Korea Expands Crypto Seizures to Cold Wallets (10.7)

South Korea's National Tax Service announced that it can now seize crypto stored in offline cold wallets during tax evasion investigations. Officials stated they would conduct home searches and confiscate devices if evidence suggests hidden crypto holdings. Click to read the full article

3. UK Lifts Ban on Crypto Exchange-Traded Notes (10.8)

The UK Financial Conduct Authority (FCA) lifted its four-year ban on retail access to crypto exchange-traded notes (ETNs). The FCA believes that with market development and improved risk disclosures, retail investors are now better able to understand and assess the risks of ETNs.Click to read the full article

4. Kazakhstan Closes Illegal Crypto Platforms and Strengthened ID Verification Rules (10.8)

Kazakhstan's Financial Monitoring Agency shut down 130 unlicensed crypto exchangers linked to money laundering and confiscated $17 million in assets. The government also introduced new ID verification rules for large transfers .Click to read the full article

5. Dubai Fines Unlicensed Crypto Firms (10.9)

Dubai's Virtual Assets Regulatory Authority (VARA) fined 19 companies that were engaged in regulated activities without being registered for a crypto license, and ordered them to cease operations, with penalties ranging from AED 100,000 to AED 600,000.Click to read the full article

6. U.S. SEC to Introduce “Innovation Exemption” Rulebook (10.10)

SEC Chair Paul Atkins announced plans to finalize an "innovation exemption" rulebook by late 2025, allowing crypto startups to experiment with lighter compliance requirements. Click to read the full article

7. Russia’s Central Bank to Enable Tokenized Domestic Shares for Foreign Investors (10.11)

The Central Bank of Russia has proposed allowing foreign investors to purchase tokenized Russian equities via blockchain platforms, thereby bypassing intermediaries affected by Western sanctions. This initiative is seen as part of Russia’s broader strategy to mitigate the impact of sanctions and to advance the digital transformation of its financial markets.Click to read the full article

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