FinTax Crypto Compliance Policy Report for the Second Half of January

This report summarizes the global tax, accounting, and compliance policy developments in the cryptocurrency sector during the second half of January 2025. 

In terms of tax, U.S. Senator Ted Cruz is looking to block a crypto broker tax rule that was put in place before D.J. Trump took office. Eric Trump, the second son of D.J. Trump, has confirmed that U.S.-based projects like XRP and HBAR will benefit from zero capital gains tax in the future, while non-U.S. projects will face a tax rate of around 30%. Microstrategy may face massive tax liabilities due to unrealized gains and is currently seeking exemptions.  

In terms of accounting, the U.S. Securities and Exchange Commission (SEC) has revoked a rule that prevented financial firms from holding cryptocurrency, which required firms to record digital assets as liabilities on their balance sheets. 

In terms of compliance, the European Securities and Markets Authority (ESMA) is urging crypto companies to limit stablecoins that do not comply with the EU’s new crypto asset market regulation (MiCA). The Hong Kong Securities and Futures Commission has granted operating licenses to two cryptocurrency exchanges based in Hong Kong, PantherTrade and YAX. French investigators have launched a judicial inquiry into Binance over money laundering, tax fraud, drug trafficking, and other charges. Pump.fun is facing a class-action lawsuit for marketing and issuing meme tokens without registration. 

# Recommended Readings # 

New U.S. Crypto Asset Tax Reporting Regulations: Content, Impact, and Strategies

Make Meme Coins Great Again? The Frenzy and Concerns Behind Trump’s Crupto Move 

Part I Tax

Tax – the United States–Ted Cruz plans to overturn controversial IRS crypto tax rule as Trump enters office(1.17) 

Sen. Ted Cruz plans to introduce a Congressional Review Act resolution next week aimed at overturning a controversial tax rule requiring certain decentralized finance brokers to file reports on gross proceeds. He says this rule would dramatically infringe on both the privacy and security of Americans while disincentivizing innovation and potentially crippling decentralized finance and cryptocurrency development in the United States. Click to read the original article 

Tax – the United States-Eric Trump Allegedly Confirms U.S.-Based Crypto Projects Will Benefit From Zero Capital Gains Tax(1.23) 

Eric Trump has allegedly confirmed that U.S.-based projects like XRP and HBAR will eventually benefit from zero capital gains tax, while non-U.S.-based projects face a ~30% tax. Click to read the original article 

Tax – the United States- MicroStrategy Suddenly Has a Tax Problem, and Needs Help From Trump’s IRS (1.24) 

MicroStrategy may face significant tax liabilities due to unrealized gains. The company holds 461,000 bitcoins, and if it does not receive a tax exemption, it may need to sell some of its bitcoins to pay these taxes. This issue arises from the Corporate Alternative Minimum Tax (CAMT) in the Biden administration’s 2022 Inflation Reduction Act. The tax requires companies with annual income over $1 billion to pay a minimum tax rate of 15%. CAMT specifically targets unrealized gains, which could impact MicroStrategy’s financial situation and possibly shake up the cryptocurrency market. Click to read the original article 

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Accounting –the United States- SEC cancels controversial crypto accounting rule SAB 121(1.23) 

On January 23, the U.S. Securities and Exchange Commission (SEC) issued a Staff Accounting Bulletin announcing the repeal of the interpretive guidance under SAB 121. This rule had required financial firms to record digital assets held on behalf of clients as liabilities on their balance sheets. Introduced in March 2022, SAB 121 faced strong opposition from the crypto industry, which argued that it made managing digital assets more complex. Click to read the original article 

Part III Compliance 

Compliance – Europe -EU regulator urges firms to restrict non-MiCA-compliant stablecoins(1.20) 

The European Securities and Markets Authority (ESMA) has called on companies to limit stablecoins that do not comply with the EU’s new Markets in Crypto-Assets (MiCA) regulation. In a statement released on January 17, ESMA emphasized the role of national competent authorities (NCAs) in ensuring that crypto-asset service providers (CASPs) align their services with the latest guidelines from the European Commission. The guidelines clearly state that MiCA prohibits issuers from offering stablecoins that are not authorized or do not comply with MiCA regulations.Click to read the original article 

Compliance –Hong Kong-Hong Kong SFC grants first crypto licenses of 2025(1.27) 

On Jan. 27, the SFC awarded operational licenses to two Hong Kong-based crypto exchanges—PantherTrade and YAX. According to public records maintained by the Hong Kong government, both entities were registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).The regulator has issued seven crypto licenses in total since it started a licensing drive in mid-2024. Click to read the original article 

Compliance –France -France deepens probe into Binance over alleged money laundering(1.28) 

French investigators have launched a judicial inquiry into Binance over allegations of money laundering, tax fraud, drug trafficking, and other charges. A Binance spokesperson did not immediately respond to a request for comment. Previously, Binance’s French entity had been under preliminary investigation by the Paris Financial Judicial Investigation Service since February 2022.Click to read the original article 

Compliance –the United States -Crypto Platform Pump.fun Sued by Investor Over All Memecoins(1.31) 

Pump.fun is facing a class-action lawsuit, with plaintiffs alleging that the platform violated U.S. securities laws by marketing and issuing unregistered, highly volatile meme coins, exposing investors to significant financial risk while collecting nearly $500 million in fees. The lawsuit has been filed in the U.S. District Court for the Southern District of New York and marks the first time all meme coins on the Pump.fun platform have been targeted in legal action. The plaintiffs describe it as “a new evolution of Ponzi schemes and pump-and-dump tactics.”Click to read the original article