FinTax Crypto Compliance Highlights——October 2026, Issue 1

Abstract

This report summarises key tax and regulatory developments in the global crypto asset industry during the first half of October 2026.

On the tax front, Australia released draft legislation to incorporate the Crypto-Asset Reporting Framework (CARF) into domestic law and establish a domestic reporting regime. The UK's HM Revenue & Customs (HMRC) issued dedicated guidance on value added tax (VAT) for cryptoassets.

On the regulation front, South Korea's Financial Services Commission (FSC) sought comments on draft implementing rules for securities tokenisation, aiming to clarify issuance and circulation requirements. The US Securities and Exchange Commission (SEC) proposed new crypto-asset custody rules for investment advisers and funds, while the Commodity Futures Trading Commission (CFTC) launched rulemaking to establish a comprehensive regulatory framework for crypto-asset markets. Meanwhile, the US Treasury withdrew two proposed crypto-related regulatory proposals. In the European Union, the European Banking Authority (EBA) classified USDC as the EU's first significant e-money token. The European Securities and Markets Authority (ESMA) set out supervisory expectations for services involving non-MiCA-compliant stablecoins and sought evidence on the use of tokenised collateral in central clearing.

Part I Tax

1. Australia Releases Draft Legislation to Introduce CARF into Australian Law (10.15)

The Australian Government released the draft Treasury Laws Amendment Bill 2026: Tax information reporting for public consultation, with comments due by 28 October. The draft aims to establish a unified framework to incorporate the Organisation for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework (CARF) into Australian law and introduces a domestic crypto asset reporting regime for transactions involving Australian residents. Click here to read the original.

2. UK HMRC Issues Dedicated VAT Guidance on Cryptoassets (10.15)

HM Revenue & Customs (HMRC) issued Help with VAT treatment of cryptoassets — GfC21, explaining how UK VAT applies to cryptoasset activities, including when to register, place of supply rules and recordkeeping. It emphasises that VAT treatment depends on the type of cryptoasset and how it is used, rather than its definition or name. Click here to read the original.

Part II Supervision

1. US SEC Proposes New Crypto-Asset Custody Rules for Advisers and Regulated Funds (10.06)

The US Securities and Exchange Commission (SEC) proposed new crypto-asset custody rules for registered investment advisers and regulated funds. Subject to specified conditions, the proposals would allow investment advisers to self-custody crypto assets and regulated funds to self-custody those assets through their investment advisers. They would also permit state trust companies to act as custodians if they meet specified conditions. Click here to read the original.

2. US CFTC Seeks Public Comment on a Comprehensive Regulatory Framework for Crypto-Asset Markets (10.05)

The US Commodity Futures Trading Commission (CFTC) issued an Advanced Notice of Proposed Rulemaking (ANPRM), seeking public comments on a comprehensive regulatory framework for crypto-asset transactions. The framework would address section 2(c)(2)(D) of the Commodity Exchange Act and the retail commodity transactions covered by that provision. Click here to read the original.

3. South Korea's FSC Seeks Comments on Draft Rules for Securities Tokenisation (10.01)

South Korea's Financial Services Commission (FSC) proposed revisions to subordinate regulations under the Financial Investment Services and Capital Markets Act and the Act on Electronic Registration of Stocks and Bonds to pave the way for the implementation of the tokenization of securities issuance and circulation. The proposals would, for example, clarify the scope of tokenised securities and the requirements for distributed ledgers and issuer account management entities. They would also introduce a new licensing category for over-the-counter exchanges for debt securities and investment limits for retail investors. Click here to read the original.

4. US Treasury Withdraws Two Proposed Digital Asset Related Rules (10.05)

The US Treasury's Financial Crimes Enforcement Network (FinCEN) announced the withdrawal of two crypto-related regulatory proposals: A proposal of Certain Transactions Involving Convertible Virtual Currency or Digital Assets, concerning transaction involving convertible virtual currencies and unhosted wallets; and A proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern. Click here to read the original.

5. ESMA Sets Out Supervisory Expectations for Services Involving Non-MiCA-Compliant Stablecoins (10.08)

The European Securities and Markets Authority (ESMA) issued an opinion stating that authorised crypto-asset service providers (CASPs) should not provide EU clients with services involving stablecoins that do not comply with the Markets in Crypto-Assets Regulation (MiCA). These include operating trading platforms, exchange services, order execution and transmission, investment advice, transfers, custody and portfolio management. Limited services needed to liquidate, convert, withdraw, transfer or safeguard pre-existing exposures may continue temporarily under close supervision. ESMA also called on national competent authorities to supervise market participants. For existing holdings, supervisors should require remediation as soon as possible, and no later than three months after publication of the opinion. Click here to read the original.

6. ESMA Seeks Evidence on the Use of Tokenised Collateral in Central Clearing (10.09)

The European Securities and Markets Authority (ESMA) launched a call for evidence on the use of tokenised collateral by central counterparties (CCPs). The exercise focuses on how tokenisation affects the transfer, management, protection and use of collateral throughout its lifecycle. It covers digital twins of traditional assets, assets issued natively on distributed ledger technology (DLT) platforms and hybrid structures, with a focus on legal rights and protections, liquidity and risk management. Click here to read the original.

7. EBA Classifies USDC as the EU's First Significant E-Money Token (10.14)

The European Banking Authority (EBA) classified USDC as the EU's first significant e-money token. From 12 November 2026, USDC will be subject to dual supervision by the EBA and France's Prudential Supervision and Resolution Authority (ACPR), in line with its classification under MiCA. Direct supervisory responsibilities for own funds, the reserve of assets, liquidity requirements, and recovery and redemption p