FinTax Crypto Compliance Highlights — August 2026, Issue 2

Abstract

This report summarizes major tax, accounting and supervisory developments in the global crypto-asset industry during the second half of August 2026.

On the tax front, HM Revenue & Customs (HMRC) publishes first official statistics on taxable cryptoasset gains, with 240 crypto millionaires accounting for more than half of gains.

On the accounting front, the American Institute of CPAs (AICPA) updated its Accounting for and Auditing of Digital Assets practice aid, adding guidance on stablecoin issuers and auditing mining revenue arrangements. The Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update that would clarify the conditions under which stablecoins may be treated as cash equivalents for accounting purposes.

On the supervision front, the U.S. Department of the Treasury added Iran’s digital assets sector to the sectoral sanctions scope under Executive Order 13902 and issued a proposed rulemaking to implement section 3 of the GENIUS Act. The U.S. Securities and Exchange Commission (SEC) proposed Regulation Crypto Assets, which would establish offering exemptions and a conditional safe harbor for certain investment contracts involving crypto assets. The number of MiCA-authorised crypto-asset service providers in the EU rose to 331, with Germany ranking first at 79. South Korea strengthened registration reviews for virtual asset service providers by expanding the review scope to major shareholders. The Hong Kong Securities and Futures Commission (SFC) issued a circular on mitigating risks in receiving client deposits through simplified eDDA arrangements, setting out risk assessment and mitigation requirements for VASPs.

Part I Tax

1. UK Publishes First Official Statistics on Taxable Cryptoasset Gains (08.27).

HMRC published dedicated statistics on taxable cryptoasset gains for the first time. In the 2024 to 2025 tax year, 17,600 individuals reported taxable cryptoasset gains, of whom 240 each reported more than £1 million in capital gains, accounting for more than half of the total amount reported. Over the past 12 months, HMRC sent 81,000 tax reminder letters, up 25% from the previous year, and estimated that its cryptoasset compliance and education activities generated an additional £168 million in tax revenue. Click here to read the original.

Part II Accounting

1. U.S. AICPA Provides New Guidance on Stablecoins, Mining Revenue and Current Auditing Standards (08.25)

The American Institute of CPAs (AICPA) released an updated version of its practice aid, Accounting for and Auditing of Digital Assets, adding a new chapter on accounting considerations for stablecoin issuers and a new auditing chapter on mining revenue arrangements. The practice aid was also updated to reflect the recently effective Statement on Auditing Standards No. 148 (SAS No. 148) and revisions related to SAS No. 146, Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards, and Chapter 5 on the existence, rights and obligations of digital assets was restructured. Click here to read the original.

2. U.S. FASB Proposes Criteria for Treating Stablecoins as Cash Equivalents (08.18)

The U.S. Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update that would clarify the conditions under which stablecoins may be treated as cash equivalents for accounting purposes, with comments due by November 19. Under the proposal, digital assets such as stablecoins could be classified as cash equivalents when three conditions are met: the holder has a contractual right to redeem the asset on demand directly with the issuer; the asset is convertible into a known amount of cash without significant fees or restrictions; and the issuer holds qualifying reserves, such as cash or short-term, highly liquid assets, in a segregated account at a ratio of at least 1:1. Click here to read the original.

Part III Supervision

1. U.S. Treasury Adds Iran’s Digital Assets Sector to Sanctions Scope (08.24)

On August 24, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), pursuant to Executive Order 13902, issued sectoral sanctions determinations covering several sectors of the Iranian economy, including digital assets. OFAC may therefore impose sanctions on individuals and entities operating in Iran’s digital assets sector, potentially increasing secondary sanctions exposure and anti-money laundering compliance risks for crypto-asset service providers such as exchanges. Click here to read the original.

2. EU MiCA-Authorised Crypto-Asset Service Providers Rise to 331, with Germany Ranking First (08.21)

According to the latest register published by the European Securities and Markets Authority (ESMA) as of August 21, the number of crypto-asset service providers authorised under the Markets in Crypto-Assets Regulation (MiCA) rose to 331. Germany’s Federal Financial Supervisory Authority (BaFin) approved crypto-asset service provider authorisations for a number of cooperative banks in quick succession, bringing Germany’s total to 79, the highest among EU Member States, followed by France with 35 and the Netherlands with 29. Click here to read the original.

3. South Korea Expands VASP Registration Review to Major Shareholders (08.20)

On August 11, the South Korean government approved a revision to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information, expanding the scope of registration review for virtual asset service providers (VASPs) to major shareholders. Under the revised rules, major shareholders are subject to reviews of criminal records, financial soundness and social credibility comparable to those applied to executive officers. The new registration requirements took effect on August 20. Click here to read the original.

4. U.S. SEC Proposes Regulation Crypto Assets, with Offering Exemptions and a Conditional Safe Harbor (08.18)

On August 18, the U.S. Securities and Exchange Commission (SEC) formally proposed Regulation Crypto Assets, establishing a tailored securities offering framework for certain investment contracts involving crypto assets. The proposal would create two exemptions from securities registration requirements for covered investment contracts: one permitting offerings of up to $5 million during a four-year period; and another permitting offerings of up to $75 million during each 12-month period, subject to financial statement and ongoing reporting requirements. The proposal would also establish a conditional safe harbor under which a crypto asset would be deemed not to be subject to an “investment contract” for purposes of the federal securities laws if specified conditions are satisfied. Click here to read the original.

5. U.S. Treasury Issues Proposed Rulemaking to Implement the GENIUS Act (08.17)

The U.S. Department of the Treasury issued a Notice of Proposed Rulemaking (NPRM) to implement section 3 of the GENIUS Act, addressing requirements for the issuance of payment stablecoins in the United States and the offering and sale of foreign-issued payment stablecoins in the U.S. market, including issuer eligibility, reserve asset management and disclosure requirements. Under the Act, licensing requirements for issuers are expected to take effect on January 18, 2027, while restrictions on the distribution of foreign-issued payment stablecoins in the United States will take effect on July 18, 2028. The NPRM provides a 60-day public comment period following publication in the Federal Register and remains at the proposal stage. Click here to read the original.

6. Hong Kong SFC Issues Circular on Risks of Receiving Deposits Through Simplified eDDA Arrangements (08.20)

The Hong Kong Securities and Futures Commission (SFC) issued a circular to licensed corporations, SFC-licensed virtual asset service providers (VASPs) and associated entities titled “Mitigating risks in receiving deposits through simplified eDDA arrangements.” The circular sets out compliance requirements for money laundering, customer identification and operational risks that may arise when licensed firms use simplified electronic Direct Debit Authorisation (eDDA) arrangements to receive client deposits. It represents the SFC’s latest supervisory guidance on fiat funding channels for virtual asset activities. Click here to read the original.