Abstract

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

On the taxation front, South Korea is preparing to join the OECD's global data-sharing initiative by 2027, signaling a move towards greater transparency in crypto taxation. Ukraine has advanced a bill proposing a 23% tax on crypto profits, while Thailand has opted for a five-year tax exemption on digital asset capital gains to foster growth. Vietnam, on the other hand, has launched a five-year pilot program for crypto trading platforms, temporarily applying existing securities tax policies.

On the regulatory front, Japan's Financial Services Agency proposes reclassifying cryptocurrencies under its securities law to bolster investor protection. European Central Bank President Lagarde advocates for stricter regulations on non-EU stablecoin issuers to mitigate systemic risks and close existing regulatory loopholes. Kazakhstan is taking proactive steps by establishing a national Digital Assets Fund to build a strategic crypto reserve. South Korea has introduced self-regulatory guidelines capping crypto lending interest at 20%, and removing restrictions for crypto companies seeking venture business status. To combat cross-border illicit activities, the U.S. SEC has formed a dedicated Cross-Border Task Force. Hong Kong is consulting on detailed crypto asset classification to align banks with international capital requirements. However, India is reportedly leaning against a comprehensive crypto framework due to systemic risk concerns, preferring to rely on existing laws.

Part I Tax

1. South Korea to Share Crypto Transactions Data Globally (9.1)

The South Korean government will initiate practical procedures to join the “Crypto Asset Automatic Information Exchange Framework” (CARF) led by the Organisation for Economic Co-operation and Development (OECD). This framework will enable the sharing of foreign investors' transaction information on domestic exchanges such as Upbit and Bithumb with other countries. Simultaneously, transaction records of South Korean residents on overseas exchanges will be shared with the National Tax Service.  Click here to read the original article

2. Ukraine Parliament Passes First Reading of Crypto Legalization Bill with 23% Tax Rate (9.4)

Ukraine’s parliament passed the first reading of its crypto legalization bill No. 10225-d, establishing a 23% combined tax rate on virtual asset profits. The legislation proposes an 18% personal income tax plus 5% military levy on crypto gains, with preferential 5% rates for fiat conversions during the first year of implementation.  Click here to read the original article

3. Thailand Ministerial Regulation to Exempt Crypto Trading Tax Publicised (9.5)

The 399th ministerial regulation issued by the Thailand Finance Ministry to exempt income tax on capital gains from the trading of digital assets for five years has been published in the Royal Gazette on September 5, after being signed by then deputy finance minister Julapun Amornvivat on August 27. Click here to read the original article

Part II Supervision

1. Japan Seeks Stricter Oversight of Crypto Under Financial Instruments and Exchange Act. (9.2)

Japan’s Financial Services Agency (FSA) recommends regulating cryptocurrencies under the Financial Instruments and Exchange Act (FIEA), moving them from under the Payment Services Act. The regulator said that many issues within crypto resemble those traditionally addressed under the FIEA, so it may be appropriate to apply similar mechanisms and enforcement. Click here to read the original article.

2. President of the European Central Bank Urges Stricter Oversight of Non-EU Stablecoin Issuers (9.3)

At the ninth annual conference of the ESRB, the President of the European Central Bank warned that multi-issuance schemes allow EU and non-EU entities to jointly issue fungible stablecoins while only EU operations face regulatory requirements. And she called for stricter regulations on non-EU stablecoin issuers to close dangerous gaps in the Markets in Crypto-Assets Regulation (MiCA) framework that could trigger liquidity crises. Click here to read the original article

3. South Korea Caps Crypto Lending Interest at 20% (9.5)

The South Korea Financial Services Commission has implemented the self-regulatory “Virtual Asset Lending Guidelines” developed by the Financial Supervisory Service and Digital Asset Exchange Association. The new guidelines focus on three core areas: service scope restrictions, user protection, and market stability. The guidelines explicitly prohibit excessive leverage lending and won cash lending. Exchanges must use their own assets to provide services and are barred from third-party entrusted or indirect lending models. Click here to read the original article.

4. U.S. SEC Announces Formation of Cross-Border Task Force to Combat Fraud (9.5)

The United States Securities and Exchange Commission announced the Cross-Border Task Force will focus initially on investigating potential U.S. federal securities law violations related to foreign-based companies, including potential market manipulation, such as “pump-and-dump" and "ramp-and-dump" schemes. Click here to read the original article

5. Kazakhstan President Tokayev tasks to establish Digital Assets Fund (9.8)

At the annual State of the Nation Address, Tokayev said that it is crucial to establish the State Fund of Digital Assets at the ground of the National Bank’s investment corporation to accumulate the strategic crypto reserve of the most promising assets of the new digital financial system. Click here to read the original article

6. Hong Kong Monetary Authority is consulting on Classification of Crypto Assets (9.8)

The Hong Kong Monetary Authority issued consultation on new and revised SPM modules CRP-1 “Classification of Crypto Assets” within the Supervisory Policy Manual (SPM) to the local banking sector. This aims to further clarify regulatory guidance for the new capital requirements for banks under the Basel Committee on Banking Supervision's crypto asset regulatory standards, which are scheduled to take effect in early 2026. Click here to read the original article

7. Vietnam Experiments With Crypto Trading Market (9.9)

Vietnam has approved a five-year pilot for cryptocurrency tradingExchanges requires to hold 10 trillion dong in capital, secure 65% from institutions and limit foreign ownership to 49%. Tax policies for transactions, transfers, and trading of crypto assets shall be applied as tax regulations for securities until tax policies for the crypto asset market in Vietnam are established. Click here to read the original article

8. India Stalls Full Crypto Framework, Citing Systemic Risk Fears (9.10)

India is leaning towards not creating legislation to regulate cryptocurrencies in the country and instead will maintain partial oversight, fearing that bringing the digital assets into its mainstream financial system could raise systemic risks, a government document shows. And the document also said that the present tax and other laws act as a deterrent towards speculative trading in cryptocurrencies, and penalise fraud and illegal activities. Click here to read the original article

9. Venture Business Applications Now Open to South Korean Crypto Companies (9.10)

South Korea President Lee Jae-myung presided over a cabinet meeting on the 9th and voted in favour of the "Amendment to the Enforcement Decree of the Special Act on Fostering Venture Companies.". The trading and brokerage of virtual assets will be removed from the list of industries restricted from being classified as venture businesses. And the amended decree will take effect on September 16  Click here to read the original article

Reccommanded Reading

1.Basic Research on Singapore’s Crypto Tax and Regulatory System

2.The Third Largest Sovereign Bitcoin Holder: A Quick Look at Bhutan’s Cryptocurrency Tax and Regulatory Setup

3.An Executive Summary of STRENGTHENING AMERICAN LEADERSHIP IN DIGITAL FINANCIAL TECHNOLOGY