The United States Internal Revenue Service has proposed regulations for the sale and exchange of digital assets by brokers, aiming to simplify tax filings and prevent tax cheating, with the rules set to go into effect in 2026; meanwhile, several crypto commentators have criticized the new tax reporting rules.
The U.S. Securities and Exchange Commission (SEC) treating a non-fungible token (NFT) as a security for the first time highlights the need for developers to consider regulatory compliance when selling crypto-assets.
U.S. Securities and Exchange Commission Chair Gary Gensler continues to emphasize the importance of crypto companies complying with securities laws, despite recent setbacks in court cases against the industry. Gensler will discuss recent enforcement actions and proposals related to cryptocurrency firms but will avoid discussing ongoing litigation, including high-profile cases against Coinbase and Binance.
The New York Department of Financial Services (DFS) has updated its virtual currency oversight regime and removed over two dozen tokens, including Ripple, Dogecoin, and Litecoin, from its approved "greenlist," leaving only eight tokens, including Bitcoin and Ether, on the list. The updated guidance clarifies the department's expectations for coin-listing and delisting policies, includes heightened risk assessment standards, and requires a token-delisting policy to mitigate the impact on users. DFS has become a leading digital asset supervisor in the absence of comprehensive crypto regulation from Congress.
The UK's Financial Conduct Authority (FCA) has warned cryptocurrency businesses to comply with new financial promotion rules, as the majority of firms are ignoring them; failure to comply could result in imprisonment, fines, or both. Only 24 out of over 150 firms have responded to the FCA's survey regarding the new rules, which will severely restrict communication of financial promotions from unauthorized crypto businesses.
Hong Kong's Securities and Futures Commission (SFC) will publish a list of companies that have applied for cryptocurrency trading licenses, following public demand and in response to the backlash over JPEX's unauthorized operations. However, being an applicant does not imply full compliance with SFC regulations.
Cryptocurrency faces regulatory challenges that could shape its future, but despite these challenges, the industry holds promise with developments such as increased institutional adoption, central bank digital currencies (CBDCs), DeFi innovation, interoperability, and expected regulatory clarity.
Taiwan's Financial Supervisory Commission (FSC) has issued new rules and guidelines to protect cryptocurrency investors, including separating exchange treasury assets from customer assets and requiring foreign virtual asset service providers to obtain necessary approvals to operate in the country.
Major global cryptocurrency exchanges like Binance and OKX are working to comply with the United Kingdom's new financial promotion regulations to ensure fair and transparent crypto promotions, while some firms have been listed as "non-authorized" for promoting services without permission.
The Australian Treasury has proposed new regulations to regulate cryptocurrency exchanges under existing financial services rules, receiving praise from crypto exchanges for providing regulatory certainty and promoting industry growth and innovation. However, some express concerns about fitting the crypto industry into existing financial services regulation.
