FinTax Crypto Compliance Highlights — July 2026, Issue 2
This report summarizes major tax and supervisory developments in the global crypto-asset industry during the second half of July 2026.
Executive Summary
This report summarizes major tax and supervisory developments in the global crypto-asset industry during the second half of July 2026.
On the tax front, the South Korean government confirmed that taxation of virtual asset gains will take effect as scheduled on January 1, 2027, following several previous postponements.
On the supervision front, South Korea advanced work on a Digital Asset Basic Act intended to consolidate fragmented legislation into a unified framework. In the United States, several federal regulators failed to finalize implementing rules for payment stablecoins under the GENIUS Act by the statutory deadline, extending the period of regulatory uncertainty, while the Senate released consolidated CLARITY Act text that faced strong opposition from Democratic negotiators. Nigeria's president signed an executive order establishing an interagency council to coordinate virtual asset supervision. A FATF report showed that global legislative implementation of the Travel Rule had risen to 83%, although supervisory and enforcement action remained limited; misuse of stablecoins and risks involving offshore service providers, unhosted wallets and DeFi arrangements continued to be major areas of exposure. Vietnam introduced administrative penalties for violations in the crypto-asset sector, including a maximum fine of USD1,900 for trading through an unlicensed platform. The Bank of Tanzania is developing a legal and regulatory framework for virtual assets, with a focus on money laundering and terrorist financing risks. Overall, this issue reflects deeper domestic and international supervisory coordination, alongside differentiated approaches by jurisdictions seeking to balance innovation and risk.
Part I: Tax
South Korean Government Confirms Taxation of Virtual Asset Gains to Begin in 2027 (07.29)
South Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol stated at a plenary meeting of the National Assembly Strategy and Finance Committee that the government was proceeding with virtual asset taxation as scheduled. Under the current framework, beginning January 1, 2027, income from virtual asset transactions will be separately taxed as "other income." The portion of annual net gains exceeding KRW2.5 million will be subject to a 20% tax rate, rising to a maximum of 22% when local income tax is included. The tax regime was originally scheduled to take effect in January 2022 but has previously been postponed three times.
Part II: Supervision
South Korea's FSC Seeks to Consolidate Multiple Crypto Bills into a Unified Digital Asset Basic Act (07.29)
Financial Services Commission (FSC) Chairman Lee Eog-weon proposed, in the FSC's first work report for the second half of the year submitted to the National Assembly Political Affairs Committee, consolidating approximately ten cryptocurrency- and stablecoin-related bills currently pending before the National Assembly into a unified legislative framework, the Digital Asset Basic Act. The legislation would cover the digital asset industry, markets and user protection, and would include rules on stablecoin issuance and strengthened anti-money laundering requirements. The goal is to complete the legislation within 2026.
U.S. Senate Releases Consolidated CLARITY Act Text, Drawing Democratic Opposition (07.22)
The U.S. Senate released the latest consolidated text of the Digital Asset Market Clarity Act (CLARITY Act). The 616-page text combines versions previously advanced separately by the Senate Banking Committee and the Senate Agriculture Committee, incorporates a number of key revisions, and adds provisions on government ethics, enforcement tools, sanctions and anti-money laundering. Seven Democratic senators who had previously participated in bipartisan negotiations opposed the text, arguing that it still falls short and calling for stronger provisions on ethics, consumer protection, illicit finance and conflicts of interest.
U.S. Regulators Miss One-Year Statutory Deadline for GENIUS Act Stablecoin Rules (07.18)
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) requires federal regulators to complete implementing rules within one year after the Act was signed, by July 18, 2026. However, the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Department of the Treasury had not issued final rules by that date, and the relevant measures remained at the proposal or public-comment stage. Under the Act, its effective date is the earlier of January 18, 2027, or 120 days after final implementing regulations are issued, extending the regulatory gap into late 2026 or 2027.
Nigerian President Signs Executive Order Coordinating Virtual Asset Supervision and Establishing an Interagency Council (07.17)
Nigerian President Bola Ahmed Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a new framework under Section 5 of the Constitution to harmonize virtual asset supervision nationwide. The Order establishes a Virtual Asset Council chaired by the Central Bank of Nigeria, with the Nigeria Revenue Service and the Securities and Exchange Commission serving as vice-chairs. It also establishes a Virtual Asset Office responsible for the day-to-day coordination of information sharing, applications and reporting among the participating agencies. The Order does not create a new regulator and is intended to coordinate, rather than replace, the statutory mandates of existing authorities.
FATF Releases Seventh Targeted Update on Virtual Assets as Travel Rule Legislation Expands (07.16)
The Financial Action Task Force (FATF) released Virtual Assets: Targeted Update on Implementation of the FATF Standards, its seventh update assessing global implementation of Recommendation 15 (R.15), including anti-money laundering and counter-terrorist financing requirements for virtual assets and virtual asset service providers. The report found that 83% of surveyed jurisdictions had passed legislation implementing the Travel Rule, while 40% of jurisdictions with such legislation had taken supervisory or enforcement action. It also reported continued growth in the misuse of stablecoins by terrorist financiers and other illicit actors, while offshore virtual asset service providers, unhosted wallets and DeFi arrangements remained major areas of risk exposure.
Vietnam Introduces Administrative Penalties for Crypto-Asset Violations (07.16)
Vietnam issued Decree No. 284/2026/ND-CP, establishing an administrative penalty framework for violations involving crypto assets and the crypto-asset market. The Decree implements Resolution No. 05/2025/NQ-CP and will take effect on September 1, 2026. It provides for fines of up to VND50 million, approximately USD1,900, for investors trading through unlicensed platforms, and fines of up to VND200 million, approximately USD7,700, for unauthorized issuance of crypto assets and serious anti-money laundering violations. Regulators may also order the suspension of relevant activities, revoke business qualifications and confiscate assets involved in the violations.
Bank of Tanzania Plans Rules for Cryptocurrencies and Stablecoins, Focusing on Money Laundering and Terrorist Financing Risks (07.15)
Bank of Tanzania Governor Emmanuel Tutuba stated that the central bank was developing a legal and regulatory framework for virtual assets, cryptocurrencies and stablecoins to strengthen supervision of the sector and protect investors. Tutuba said participation among young local investors was increasing and that the central bank had received multiple complaints concerning losses from crypto transactions. The new rules will focus on addressing money laundering, terrorist financing and financial stability risks.
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