FinTax Crypto Compliance Highlights — July 2026, Issue 1
This report summarizes major tax and regulatory developments in the global crypto-asset industry during the first half of July 2026.
Executive Summary
This report summarizes major tax and regulatory developments in the global crypto-asset industry during the first half of July 2026.
On the tax front, several jurisdictions further refined their crypto-asset taxation and information-reporting regimes. Kazakhstan proposed an individual income tax exemption for gains from crypto-asset transactions conducted through licensed domestic platforms, while advancing cross-border stablecoin settlements and tokenized financial instruments. South Africa released a draft crypto-asset tax guide and established a dedicated audit unit. Brazil fully implemented its DeCripto reporting system, aligning its domestic reporting regime with the Crypto-Asset Reporting Framework (CARF).
On the regulatory front, the European Union’s MiCA transitional arrangements formally ended, requiring unauthorized crypto-asset service providers to stop onboarding new clients, restrict marketing and conduct an orderly wind-down. Australia formally implemented a crypto-asset “travel rule” with no minimum transaction threshold. Hong Kong’s Securities and Futures Commission required licensed brokers and virtual asset trading platforms to phase out one-time passwords in favor of phishing-resistant authentication methods such as passkeys. The Reserve Bank of India continued to emphasize insulating the banking system from risks associated with private cryptocurrencies. The U.S. Securities and Exchange Commission placed crypto-asset safe harbors, broker-dealer custody amendments and market structure amendments on its 2026 regulatory agenda. Meanwhile, New Hampshire Governor Kelly Ayotte signed HB 639, providing state-law protections for self-custody and crypto innovation. Overall, this issue reflects a parallel emphasis on risk management and innovation protection, as well as stronger compliance obligations for institutions and enhanced digital-asset rights for individuals.
Part I: Tax
Kazakhstan President Signs Decree Proposing Individual Income Tax Exemption for Crypto Gains on Licensed Platforms (07.07)
The President of Kazakhstan signed the Decree on measures to stimulate and develop the digital assets industry in the Republic of Kazakhstan, proposing that gains from crypto-asset transactions conducted through regulated and licensed platforms in the country be exempt from individual income tax. The decree also allows associated petroleum gas to be used for autonomous electricity generation and allocated to digital mining, provided that the relevant gas is not required to meet national demand; supports the development of tokenized financial instruments, including tokenized government bonds; and encourages citizens to transfer digital assets held on unregulated offshore platforms to licensed domestic institutions.
South African Revenue Service Releases Draft Crypto-Asset Tax Guide and Establishes Dedicated Audit Unit (07.01)
The South African Revenue Service (SARS) released the Draft Guide to the Taxation of Crypto Assets for public comment on how South African tax residents should report and treat crypto-asset-related gains. Comments are due by August 31, 2026. The draft defines crypto assets as intangible assets and treats crypto-to-crypto swaps as taxable barter transactions. SARS also disclosed that it had established a dedicated Crypto Revenue Augmentation Unit to strengthen tax audits involving approximately 6 million South African crypto-asset users.
Brazil’s New DeCripto Crypto-Asset Reporting System Formally Replaces Previous Regime (07.01)
The Brazilian Federal Revenue Service’s new crypto-asset reporting system, DeCripto, became mandatory on July 1, replacing the previous national reporting system. Established under Normative Instruction RFB No. 2,291/2025, DeCripto creates a new reporting model for crypto-asset transaction information and aligns it with the international standards of the OECD Crypto-Asset Reporting Framework (CARF). Domestic exchanges must report monthly, while foreign exchanges that provide services to Brazilian residents in specified circumstances are also subject to reporting obligations. The monthly reporting threshold is BRL35,000, equivalent to approximately RMB46,400.
Part II: Supervision
Hong Kong SFC Requires Internet Brokers and Virtual Asset Platforms to Replace One-Time Passwords with Phishing-Resistant Authentication (07.09)
The Hong Kong Securities and Futures Commission (SFC) issued a circular requiring all internet brokers and licensed virtual asset trading platforms to stop using one-time passwords (OTPs) for client login and device binding within 12 months and instead adopt stronger authentication methods, including passkeys and device-binding mechanisms. Large internet brokers must implement the relevant authentication methods immediately, while other institutions must complete the transition by July 8, 2027.
U.S. SEC Releases Statement on 2026 Regulatory Agenda and Advances Crypto Safe Harbor Proposal (07.07)
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins released a statement on the 2026 regulatory agenda. Three crypto-related rulemaking items were placed at the proposed rule stage, including rules on the issuance and sale of crypto assets, amendments to broker-dealer custody rules, and crypto market structure amendments. The rules on crypto-asset issuance and sales may provide certain exemptions and safe harbors to improve regulatory certainty while preserving investor protection. The market structure rules are intended to clarify the application of rules when crypto assets trade on alternative trading systems and national securities exchanges. The three rulemaking proposals are scheduled for publication as early as this month.
Reserve Bank of India Reiterates Policy of Private Cryptocurrency Prohibition (07.02)
In documents submitted to the Parliamentary Standing Committee on Finance, the Reserve Bank of India (RBI) reiterated its position in favor of curbing or prohibiting private cryptocurrencies. The RBI stated that subjecting crypto assets to conventional financial regulation could give cryptocurrencies “false legitimacy” and create a “false sense of security.” It emphasized the need to insulate the banking system from crypto-asset risks and called for banks and other regulated financial institutions to be prohibited from holding, trading or taking exposures to crypto assets and privately issued stablecoins.
EU MiCA Transitional Period Formally Ends, Requiring Unauthorized Crypto-Asset Service Providers to Exit the Market (07.01)
The transitional period under the European Union’s Markets in Crypto-Assets Regulation (MiCA) formally ended on July 1. The European Securities and Markets Authority (ESMA) issued a statement requiring crypto-asset service providers without MiCA authorization to immediately stop onboarding new EU clients and cease marketing activities. Such providers may only undertake actions necessary for asset sales, transfers and an orderly wind-down, and must communicate continuously and promptly with clients about asset-safeguarding arrangements and the wind-down timetable.
Australia’s Crypto “Travel Rule” Takes Effect with No Minimum Transaction Threshold (07.01)
Australia’s financial intelligence agency, AUSTRAC, formally began applying the “travel rule” to local virtual asset service providers on July 1. When processing crypto transfers, providers must collect, verify and transmit identifying information concerning the payer and payee, with no minimum transaction threshold. The rule applies only to licensed operators; direct transfers between self-hosted wallets are not currently affected, and the exemption for transfers involving self-hosted wallets will remain in place until March 2029.
New Hampshire Enacts The Blockchain Basic Laws to Protect Self-Custody and Crypto Innovation (07.10)
New Hampshire Governor Kelly Ayotte recently signed HB 639, The Blockchain Basic Laws. The law protects individuals’ right to control digital assets through self-custody, provides clear legal protections for blockchain developers, miners, validators and fintech companies, and authorizes the establishment of a dedicated blockchain dispute docket in the Superior Court.
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