FinTax Crypto Compliance Highlights — February 2025, Issue 2

Abstract

This article summarizes key tax and regulatory developments in the global cryptocurrency industry during the second half of February 2025.

On taxation, both the United States and Nigeria have introduced notable measures. In the U.S., Ohio lawmakers proposed a bill to prohibit additional taxes on cryptocurrency payments, while federal legislators moved to repeal the IRS’s crypto broker reporting rule. Meanwhile, Nigeria announced plans to amend its regulations to formally impose taxes on cryptocurrency transactions and digital trade.

On the regulatory front, global crypto oversight continues to evolve under a dual trend of stringent enforcement and regulatory adjustments. Russia’s Supreme Court has pushed to classify cryptocurrencies as property in criminal cases. The U.S. Securities and Exchange Commission (SEC) closed its investigation into OpenSea and withdrew an appeal seeking expanded crypto oversight, while also clarifying that memecoins are not considered securities, leaving investors to bear their own risks. In South Korea, Upbit faces fines and partial business suspension for violating KYC regulations. In the U.S., OKX subsidiary Aux Cayes FinTech reached a settlement with the Department of Justice, agreeing to pay a fine. Meanwhile, Dubai is moving forward with plans to disclose the identities of major crypto holders. In the UK, the government has introduced a bill aimed at recovering illicit proceeds from crypto-related crimes.

 

 

Part I Tax

 

Tax-Nigeria-Nigeria Plans to Amend Regulations for Taxation of Crypto Trading and Digital Transactions(2.19)

 

Nigeria is planning to revise its regulations to include crypto trading and digital transactions taxation in its regulatory framework, which would enhance government revenue. According to a Bloomberg report, the Nigeria Securities and Exchange Commission (SEC) has announced plans to implement new rules to ensure that eligible transactions on regulated exchanges are taxed appropriately. A bill detailing the taxation framework is currently under consideration by lawmakers and is anticipated to be adopted within the current quarter. Click here to read the original article.

 

Tax-US-Ohio Lawmakers Introduce Bill Banning Taxes on Digital Asset Payments(2.25)

 

Lawmakers in Ohio have introduced House Bill 116, aiming to prevent the state from imposing additional taxes on digital assets when used for payments. The bill was introduced on February 24 by Representative Steve Demetriou and co-sponsored by Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams. It seeks to ensure that cryptocurrency transactions are not subjected to fees beyond those applied to traditional fiat payments. Click here to read the original article.

 

Tax-US-US lawmakers move to repeal crypto tax rule threatening DeFi(2.27)

 

US lawmakers have taken a major step towards scrapping the controversial ‘DeFi broker rule,’ which would require digital asset brokers to report transactions to the Internal Revenue Service. The House Ways and Means Committee passed a resolution to repeal the regulation, arguing it is unworkable and threatens the country’s leadership in financial innovation. Click here to read the original article.

 

Part II Supervision

 

Supervision-Russia-Russia’s Supreme Court to Push for Cryptocurrencies to Be Classified as Property(2.20)

 

Russia’s Supreme Court is pushing for cryptocurrencies to be categorized as property in criminal cases, aiming to strengthen the ability of law enforcement to track, freeze and confiscate illegal digital assets. The Supreme Court is participating in the drafting of a “legislative initiative aimed at considering digital currencies as property in criminal proceedings,” a move that could strengthen law enforcement’s ability to deal with crypto-related crimes. Click here to read the original article.

 

Supervision-US-U.S. SEC Has closed its investigation into OpenSea(2.20)

 

The U.S. Securities and Exchange Commission (SEC) has reportedly closed its investigation into Opensea and will not take enforcement action against the non-homogenized token (NFT) marketplace. In August 2024, the Company had received a Wells Notice from the SEC alleging that Opensea’s NFTs were securities subject to registration, an allegation that was strongly opposed by the Company. Click here to read the original article.

 

Supervision-South Korea- Upbit Faces Partial Suspension &Fine for KYC Violations (2.25)

 

South Korea’s Financial Intelligence Unit (FIU) has announced a partial operational suspension of Upbit, the country’s leading cryptocurrency exchange, suspending cryptocurrency access for new users. The three-month restriction was announced on February 25 for Upbit’s failure to comply with a local policy prohibiting exchanges from trading with unregistered crypto asset service providers (CASPs). As the dominant player in the local market, controlling over 80% of crypto trading, Upbit’s case could reverberate across other regional exchanges. Authorities have suggested that Upbit may face fines of billions of Won, with penalties reaching up to 100 million Won per violation under the Special Financial Transactions Act. Click here to read the original article.

 

Supervision-OKX-OKX Subsidiary Aux Cayes FinTech Settles with US Department of Justice (2.25)

 

OKX subsidiary Aux Cayes FinTech Co. Ltd. (OKX Seychelles) reached a settlement with the U.S. Department of Justice, admitting that the company had conducted unauthorized money transfer operations in the U.S., and that all U.S. customers involved had been retired.OKX agreed to pay a fine of $84 million and to forgo approximately $421 million in revenue. The company has retained a compliance consultant and has taken steps to improve its compliance systems and enhance its global customer identification, due diligence, anti-money laundering and sanctions tools. Click here to read the original article.

 

Supervision-Dubai-Dubai Plans Move to Reveal Identity of Crypto Whales(2.26)

 

Dubai is tightening its grip on crypto transparency, pushing for new regulations that would expose the identities of major token holders. By addressing concerns over market manipulation and hidden influence, the emirate is signaling a shift toward stricter oversight in its growing digital asset sector. Click here to read the original article.

 

Supervision-UK-UK Government Introduces Bill to Recover Proceeds of Cryptocurrency Crime (2.27)

 

The UK government has introduced the Crime and Disorder Bill, which aims to strengthen the country’s ability to recover the proceeds of cryptocurrency-related crime. The bill outlines provisions for the valuation of cryptocurrencies, procedures for courts to recover illicit funds, and expanded powers for the Crown Court to issue seizure orders. The legislation addresses a range of criminal issues, including anti-social behavior, sexual offenses, public order and terrorism. Click here to read the original article.

 

Supervision- US-US SEC Characterizes Memecoins as not Securities, Investors at Their Own Risk (2.28)

 

The U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance Regulation has issued guidance on memecoins, stating that they are not securities, but rather similar to collectibles. The division concluded that the transactions described in the guidance regarding memecoins do not involve the issuance and sale of securities under the federal securities laws. Accordingly, individuals involved in the issuance and sale of Labyrinth Coins are not required to register their transactions with the Commission under the Securities Act of 1933, nor are they required to qualify for an exemption from registration under the Securities Act. Accordingly, purchasers or holders of Labyrinth Coin are not protected by the federal securities laws. Click here to read the original article.

 

Recommended Reading

 

1.        Allowing Cryptocurrency Investment lmmigration: Hong Kong’s Crypto-Friendly Policies Extend Further

2.        Crypto Tax Evasion Controversy Resurfaces: What Trouble ls Dan Morehead Facing?

3.        Pushing for Crypto Tax Reform: Czech Republic’s Breakthrough in the Crypto Currency

 

FinTax Product Updates

To B: FinTax Suite

1. Access to SOL scan, support for SOL DeFi project profit and loss calculation

– Support the data synchronization of Solana ecosystem, enhance the profit and loss calculation of SOL DeFi project, and provide more accurate financial reports.

2. Optimization of historical asset status report

– Improve the readability and data integrity of the report, and now users can query the historical profit and loss by address.

To C: FinTax for Individuals

1. Coinbase SSO is online

– Supporting one-click login for Coinbase accounts, simplifying the user access process, and improving user experience and security.

2. AI agent product access to the latest TaxDAO knowledge base

– AI Agent assistant integrates with TaxDAO’s professional tax knowledge base to enhance the accuracy of users’ tax questions and answers, and provide users with smarter tax compliance support.