FinTax Crypto Compliance Policy Report for the First Half of December

Abstract 

This report summarizes tax, accounting, and compliance policy developments in the global cryptocurrency industry for the first half of December 2024. 

On the tax front, Russia recognizes digital currencies as foreign trade property, legalizes cryptocurrency mining, and pilots cross-border cryptocurrency trading. The Czech Republic exempts bitcoin held for more than three years from capital gains tax, while Ukraine has outlined plans to legalize cryptocurrencies by 2025, but cryptocurrencies do not enjoy tax exemptions. Additionally, South Korea's National Assembly has approved the postponement of the virtual asset tax until January 1, 2027. 

On the accounting front, new rules introduced by the Financial Accounting Standards Board (FASB) last year, which will be implemented starting next fiscal year, require fair value accounting for certain cryptoassets starting in 2025. 

On the compliance front, Taiwan, China implemented new anti-money laundering rules for cryptocurrency firms, and Australia's ASIC overhauled its custody standards to address emerging risks in digital assets. Argentina approved crypto ETFs, ending a six-year ban, and for the first time, the U.S. Department of Justice launched a criminal prosecution solely for crypto tax evasion, sentencing a man to two years in prison for failing to declare $3.7 million in Bitcoin proceeds.

# Recommended Reading # 

IRS vs. Bitcoin Jesus: A $48 Million Tax Dispute!

Click here now! Manage your assets and file your taxes for free with FinTax!

Part I Tax

Part I Tax 

Europe and America 

Georgia 

Tax-Russia-Putin favors Bitcoin as Russia embraces cryptocurrencies to fight sanctions (12.4) 

The Russian government recently signed laws recognizing digital currencies as property for foreign trade, exempting crypto mining from value-added tax (VAT), and establishing a clear regulatory framework. Russia's legislative push into digital currencies aims to create a controlled but supportive environment for their use. In August, Putin also signed laws legalizing crypto mining and enabling the Central Bank to pilot cross-border transactions using cryptocurrency. Click here to read the original article. 

Czech Republic 

Tax-Czech Republic-Czech Republic Approves Capital Gains Tax Exemption for Bitcoin Held for More Than Three Years (12.11) 

The Czech Republic approved an amendment on December 6 that will exempt bitcoin held for more than three years from capital gains tax. The new rule, which will take effect on January 1, 2025, marks a significant shift in the Czech Republic's approach to digital assets. Click here to read the original article.

Ukraine 

Tax-Ukraine-Ukraine is ready to legalize cryptocurrencies in 2025, eliminate tax exemptions (12.13) 

Ukraine plans to legalize cryptocurrencies by the first quarter of 2025, developing regulations without providing tax exemptions. This proposed legislation, which is based on input from the National Bank of Ukraine and the International Monetary Fund, designs a cryptocurrency tax framework similar to the securities tax framework. Click here to read the original article.

Asia 

South Korea (Republic of Korea) 

Tax-Korea-South Korea's National Assembly has approved the postponement of the virtual assets tax until January 1, 2027 (12.10) 

The National Assembly of Korea passed amendments to the Income Tax Act on December 10, including "repealing the financial investment income tax (gold investment tax)" and "postponing the tax on virtual assets for 2 years", and extending the effective date of the virtual asset income tax from January 1, 2025 to January 1, 2027. The effective date of the virtual assets income tax was extended from January 1, 2025 to January 1, 2027. Click here to read the original article. .

Part II Accounting 

Europe and America 

United States of America 

Accounting-US-FASB's Crypto Accounting Rules to Take Effect for Fiscal Years Beginning in 2025 (12.15) 

The FASB ASU 2023-08 released last year will require the subsequent accounting of certain crypto assets at fair value, which may increase the attractiveness of crypto assets to institutional investors.These rules will be implemented for the upcoming fiscal year (i.e., the fiscal year after December 15, 2024). Some companies, however, may have voluntarily adopted the new guidance early in any interim or annual period for which they have not yet issued financial statements (such adoption would need to be reflected at the beginning of the fiscal year). Click here to read the original article.

Part III Compliance 

Asia-Pacific 

China-Taiwan 

Compliance-Taiwan-Taiwan's Anti-Money Laundering Act came into effect at the end of last month (12.1) 

Taiwan's Financial Supervisory Commission (FSC) has implemented new anti-money laundering (AML) regulations for the cryptocurrency industry on November 30th, a month earlier than initially planned, The Block reports. Under the updated regulations, cryptocurrency firms that provide services to customers in Taiwan must register for AML compliance. Failure to register or comply with the new regulations could result in up to two years in prison or fines of up to NT$5 million (about $154,000). Click here to read the original article.

Australia 

Compliance-Australia-Australian Securities and Investments Commission Overhauls Rules to Strengthen Regulation of Cryptocurrency Custody (12.10) 

The Australian Securities and Investments Commission (ASIC) has updated its asset holding guidelines through a new cryptocurrency custody standard. The update affects all Australian financial services firms that hold client assets, particularly those holding digital assets.Regulatory Guide 133 (RG 133), published by ASIChttps://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-133-funds-management-and-custodial-services-holding-assets/ , is the first major update to the original regulations since June 2022, and extends the scope of the asset holding requirements to address emerging risks in digital assets, while refining the traditional custody standards. Click here to read the original article.

America 

Argentina 

Compliance-Argentina-Argentine regulator approves U.S. crypto ETF's entry into Argentine market (12.10) 

Argentina's securities regulator, Comisión Nacional de Valores (CNV), has announced that U.S. exchange-traded funds (ETFs), including cryptocurrency-related ETFs, can trade under the CEDEAR program. The program, which is regulated by Official Gazette No.1030, introduces spot ETFs for bitcoin and ethereum, marking the end of a six-year ban under Law No.27440. Click here to read the original article.

United States of America 

Compliance-US-US DOJ Launches First Criminal Prosecution for Crypto Tax Evasion Only, Sentences Man to Two Years in Prison for Failing to Report $3.7 Million in Bitcoin Gains (12.13) 

The U.S. Department of Justice issued a release stating that an Austin, Texas man was sentenced to two years in prison for filing a tax return that falsely reported the capital gains he made from the sale of $3.7 million in Bitcoin. The regulatory section requires all taxpayers to report on their tax returns any gains from sales as well as gains or losses from the sale of cryptocurrencies such as Bitcoin. Lucy Tan, acting special agent in charge of the Houston office of the IRS Criminal Investigation (IRS-CI), said the case marks the first criminal tax evasion prosecution targeting only cryptocurrencies. Click here to read the original article.