FinTax Crypto Compliance Highlight: April 2025, Issue 1
Abstract
This article summarizes key tax and regulatory developments in the global crypto assets industry during the first half of April 2025.
On the taxation front, several countries are accelerating efforts to strengthen oversight of crypto assets. The South African Revenue Service now mandates that all taxpayers and institutions involved in crypto asset transactions complete tax registration, enabling the authorities to track relevant business activities. Meanwhile, Ukraine’s National Securities and Stock Market Commission submitted a draft proposal to parliament suggesting an 18% personal income tax and an additional 5% military tax on crypto asset gains—signaling the country’s alignment with international tax standards and a move toward market legalization and normalization. At the same time, tax compliance risks have drawn attention: a U.S.-based NFT trader now faces up to six years in prison for underreporting $13 million in profits from CryptoPunks and evading approximately $3.2 million in taxes.
On the regulatory front, Japan and the U.S. are taking divergent approaches. Japan’s Financial Services Agency plans to revise the Financial Instruments and Exchange Act by 2026 to reclassify crypto assets as “financial products,” placing them under the same regulatory framework as traditional securities such as stocks and bonds. This indicates a move toward regulatory integration with mainstream finance. In contrast, the U.S. is witnessing both deregulation and legislative pushback. Under the Trump administration, the Department of Justice dissolved its national crypto enforcement team and repealed the IRS’s DeFi broker rule. The SEC also held a roundtable to explore regulatory exemptions, signaling a shift toward lighter-touch oversight and support for innovation. Simultaneously, Congress passed the anti-CBDC bill to ensure that U.S. digital currency policy remains under the control of the American people rather than federal agencies.
Overall, countries are navigating a delicate balance between fostering market innovation, asserting financial sovereignty, and ensuring regulatory compliance, as they seek to align national interests with global trends in the crypto landscape.
Part I Tax
1.The South African Revenue Service requires crypto asset traders to register mandatorily with the tax authority.（4.3）
Edward Kieswetter, Commissioner of the South African Revenue Service (SARS), stated that all taxpayers, exchanges, and intermediaries involved in crypto asset transactions must register with the tax authority; failure to do so will be considered a violation of the law. Kieswetter noted that once registered, the tax authority will be able to track related business activities and strengthen regulatory oversight of the crypto industry.Click here to read the original article
2.Ukraine Sets 18% Income Tax on Crypto Assets（4.9）
The National Securities and Stock Market Commission (NSSMC) of Ukraine has recently submitted a draft framework on crypto asset taxation to the Parliament’s Finance Committee. The proposal includes an 18% personal income tax on crypto asset gains, along with an additional 5% military tax. Preferential tax rates of 5% and 9% are also proposed for certain taxpayers under specific conditions. This initiative aims to align Ukraine’s cryptocurrency regulations with international standards, promoting the legalization and regulation of the crypto asset market. Click here to read the original article
3.NFT Trader Faces Prison for $13 Million Tax Fraud on CryptoPunk Profits（4.13）
According to the U.S. Attorney’s Office for the Middle District of Pennsylvania, 45-year-old NFT trader Waylon Wilcox has pleaded guilty to underreporting over $13 million in profits from selling 97 CryptoPunks NFTs between 2021 and 2022, resulting in approximately $3.2 million in unpaid taxes. He admitted to filing false personal income tax returns for both years. Wilcox now faces up to six years in prison, fines, and supervised release, with sentencing details yet to be determined.Click here to read the original article
Part II Supervision
1.Japan Will Reclassify Crypto as Financial Products（4.1）
Japan’s Financial Services Agency (FSA) recently announced plans to revise the Financial Instruments and Exchange Act by 2026 to formally classify crypto assets as “financial products.” The move aims to bring crypto under the same regulatory framework as stocks and bonds, subjecting it to insider trading bans and stricter oversight to enhance market transparency and protect investor rights. However, the change has also raised concerns about higher entry barriers for retail investors and potential constraints on innovation.Click here to read the original article
2.The U.S. House Financial Services Committee Passes Anti-CBDC Bill（4.3）
On Wednesday, the U.S. House Financial Services Committee passed the “CBDC Anti-Surveillance State Act” (H.R. 1919) with 27 votes in favor and 22 against. The bill, introduced by Republican House Majority Whip Tom Emmer, aims to prevent the use of central bank digital currency (CBDC) for monetary policy purposes and prohibits the Federal Reserve from offering financial services directly to individuals. Emmer stated that the bill ensures U.S. digital currency policy remains in the hands of the American people, not administrative agencies. This move aligns with President Trump’s executive order signed in January to protect U.S. citizens from CBDC threats. Meanwhile, the committee also advanced stablecoin regulation legislation to establish a framework for U.S. dollar-pegged stablecoins and enhance their global competitiveness.Click here to read the original article
3.U.S. Department of Justice Dismantles Crypto Enforcement Unit in Major Shift Under Trump（4.9）
On April 8, 2025, the U.S. Department of Justice announced the disbandment of its National Cryptocurrency Enforcement Team , signaling a major policy shift under the Trump administration. According to a memo from Deputy Attorney General Todd Blanche, the DOJ will no longer prosecute crypto platforms, mixers, or wallet services unless there is clear evidence of intentional wrongdoing. Enforcement will now focus on serious crimes involving cryptocurrencies, such as terrorism financing, drug trafficking, and organized crime. This move aligns with the administration’s pro-crypto stance and efforts to roll back previous regulatory actions. Critics warn that this could weaken enforcement against illicit activities and increase financial risks.Click here to read the original article
4.Atkins Secomes Next SEC Chair（4.10）
Paul Atkins was confirmed as the new SEC Chair on April 10, 2025, pledging to establish a clear and principled regulatory framework for the crypto industry. He criticized the current ambiguous regulations for hindering innovation and emphasized the need for clear rules to attract investment. Previously, the SEC had dismissed several enforcement actions against crypto firms, indicating a shift towards more lenient regulation. Atkins’ appointment marks a pivotal moment in U.S. crypto policy.Click here to read the original article
5.Trump Signs Bill Repealing IRS DeFi Broker Rule in Crypto（4.12）
On April 10, Trump signed a law repealing the IRS’s “DeFi Broker Rule,” which had planned to require decentralized finance (DeFi) platforms to report user transaction data to the IRS. Finalized at the end of 2024, the rule aimed to expand the definition of “broker” to include DeFi developers and self-custodial wallet providers. Critics of the rule argued that it was incompatible with the decentralized nature of DeFi, infringed on the privacy of ordinary Americans, and could potentially hinder innovation.Click here to read the original article
6.U.S. SEC’s Crypto Trading Roundtable Delves Into Easing Path for Platforms(4.12)
On April 11, 2025, the U.S. Securities and Exchange Commission (SEC) held its latest crypto industry roundtable at its Washington, D.C. headquarters, focusing on providing clearer and more adaptable regulatory pathways for crypto trading platforms. Interim Chairman Mark Uyeda suggested implementing a “time-limited, conditional exempt relief framework” while long-term rules are developed, aiming to support blockchain innovation without compromising regulatory objectives. Commissioner Hester Peirce emphasized collaboration with the industry to explore workable regulatory approaches. This meeting is part of the SEC’s “Spring Sprint Toward Crypto Clarity,” marking a shift from enforcement-driven to collaborative regulation.Click here to read the original article