Crypto investors confused about taxes: Know the rules

🚨 Big changes are coming for crypto currency and tax, as explored in the article below. Did you know, that if you have holdings in crypto currency or had a bit of a "dabble" then from 1 January 2026, HMRC will start receiving detailed reports on your transactions directly from service providers under the new Cryptoasset Reporting Framework (CARF). That means: 🔹 Your name, address, tax residence and NI number 🔹 A breakdown of every swap, sale, gain or holding 🔹 Platforms obliged to collect and pass it all on From the 2024–25 tax year, there’s already a dedicated crypto section in Self Assessment. Whether you’ve swapped Bitcoin for Ethereum, earned through staking, or reinvested into other tokens - each disposal can be taxable. - Think of it like stocks and shares: even if you never cashed out into pounds, gains and disposals can still count. 👉 If you’re worried you may have under-reported in previous years, HMRC’s Cryptoasset Disclosure Service allows you to correct things voluntarily - often with reduced or even no penalties if you act before being prompted. So with any one who has holdings, now probably the time to: 1️⃣ Review all transactions from April 2024 onwards 2️⃣ Double-check past years are complete 3️⃣ Get prepared for new ID requests from platforms in 2026 4️⃣ Ask for help if you’re unsure - crypto tax can be complex At Old Mill, our tax colleagues are already helping clients navigate these changes and make proactive disclosures where needed. 📩 If you’d like a confidential conversation about your position, feel free to get in touch with Chris Watts in our tax team.

Traditional taxes run on rails—employers withhold wages, brokerages send 1099s, banks report interest. Crypto operates without that infrastructure, leaving investors to track thousands of wallet and chain transactions on their own. And even when done correctly, the IRS still demands line-by-line proof. The result? Cases where routine stablecoin transfers—tokens pegged to a dollar—get flagged as six-figure “phantom gains.” These audits show how outdated rules can turn compliance into punishment. Consider the scale: 1 in 5 Americans now own crypto. That’s tens of millions of taxpayers. By contrast, only about 21,000 have ever invested in Opportunity Zones—yet those zones benefit from thousands of pages of IRS guidance, while crypto investors have only a handful of notices to work with. The IRS has shown it can provide clarity when it chooses. It did so for Opportunity Zones. It can—and must—do the same for crypto. What’s needed is not volume, but clarity, fairness, and practicality. That’s why many believe crypto taxes are the defining policy battle of this industry. Stablecoins and market structure matter, but taxes impact everyone—investors, businesses, and startups alike. The future of America’s crypto leadership depends on getting it right. 👉 For expert support with crypto accounting and taxes, visit www.bitcounts.org #CryptoTax #Blockchain #FinTech #TaxPolicy #IRS #CryptoCompliance #DigitalAssets #Web3 #Accounting #CryptoLeadership

New U.S. Tax Guidance on Crypto — A Win for Digital Asset Holders The U.S. Treasury Department and IRS just issued interim guidance that could reshape how crypto is taxed at the corporate level. Under the update, unrealized (“paper”) gains and losses on digital assets will not be subject to the 15% Corporate Alternative Minimum Tax (CAMT) — a major relief for crypto-heavy firms. Why This Matters: • MicroStrategy (MSTR), with over 640,000 BTC, said it no longer expects to owe CAMT in 2026. • Coinbase (COIN) and other firms are seeing double-digit stock gains as markets react. • The change prevents companies from being forced to liquidate assets just to pay taxes on unrealized gains. • It reflects the Trump administration’s crypto-supportive stance and a shift toward more rational taxation of digital assets. Tax Takeaway: This is a strong step toward clearer and fairer crypto tax policy — especially after the Financial Accounting Standards Board (FASB) required companies in 2023 to record fair-value crypto changes in their income statements, unintentionally triggering CAMT exposure. As regulatory clarity improves and Bitcoin tops $120K, the message is clear: Tax policy is now as market-moving as monetary policy. 👉 For expert guidance on crypto accounting, CAMT, and digital asset compliance, visit www.bitcounts.org — your partner in simplifying crypto taxation. #CryptoTax #IRS #CorporateTax #CAMT #BlockchainPolicy #DigitalAssets #Coinbase #MicroStrategy #CryptoRegulation #BitCounts #CryptoAccounting #Web3Finance #TaxCompliance #CryptoPolicy

Japan has long imposed some of the world’s steepest taxes on crypto gains—up to 55% under the progressive system. These high rates have driven investors offshore, discouraged active trading, and complicated tax reporting. To counter these issues, regulators are proposing a 20% flat tax by fiscal year 2026. The new framework would align digital assets with equities, add safeguards against insider trading, and make tax obligations far more predictable. The question is: Can this 20% flat tax truly fix Japan’s crypto tax problem? In my recent analysis for DeFi Planet, I discussed how Japan’s plans could fix its crypto tax rules. Read here: https://lnkd.in/dZWppbye

Mastering Crypto Tax Strategy for U.S. Residents Crypto taxes can feel like a maze — especially for U.S. residents navigating the IRS rules for the first time. But with the right strategy, you can stay compliant and maximize your financial efficiency. Here’s a quick breakdown 👇 🔹 The IRS & Crypto: The IRS treats crypto as property, not currency — meaning capital gains rules apply to every buy, sell, or trade. 🔹 Reporting Rules: All income, gains, and losses from crypto — including airdrops and forks — must be reported. Keep detailed records: dates, prices, and amounts. 🔹 Legal Implications: Failure to disclose crypto income can lead to penalties or even criminal charges. Staying compliant protects your finances and reputation. 🔹 Common Mistakes: ❌ Not reporting income ❌ Misclassifying transactions ❌ Missing eligible deductions ✅ How to Master Crypto Tax Strategy 1️⃣ Keep Accurate Records: Document every transaction — including receipts, wallets, and invoices. 2️⃣ Understand Reporting Requirements: Know your taxable events and eligible deductions. 3️⃣ Seek Professional Guidance: Consult a crypto tax expert for clarity and compliance. 📊 The crypto tax landscape is evolving fast. Staying informed and proactive today will save you from bigger troubles tomorrow. 👉 For expert guidance on crypto accounting, digital asset compliance, and IRS reporting, visit www.bitcounts.org  — your trusted partner in simplifying crypto taxation. #CryptoTax #IRS #USATax #Blockchain #CryptoCompliance #Fintech #DigitalAssets

Crypto tax in Australia is not what most people think. It’s not a loophole. It’s not a free ride. It’s a real tax event, and it can catch you off guard. I learned this the hard way when a friend sold some Bitcoin for a small profit. He thought it was just “digital money.” The ATO thought otherwise. Months later, he got a letter. He owed tax. He had no idea. Here’s what most people miss about crypto tax in Australia: → Every time you sell, swap, or use crypto, it’s a taxable event. That means selling Bitcoin for cash, swapping Ethereum for Solana, or even buying a coffee with crypto. Each one can trigger capital gains tax (CGT). → The ATO treats crypto like property, not currency. If you buy crypto and sell it later for more, you pay tax on the profit. If you hold for more than 12 months, you get a 50% CGT discount. But if you trade often, every trade counts. → Even “crypto-to-crypto” swaps are taxed. Swapping Bitcoin for Ethereum? That’s a disposal. The ATO wants to know the value in Australian dollars at the time of the swap. Many people miss this and underreport. → Lost or stolen crypto is not always a tax write-off. You need proof. If you lose your private keys or get hacked, you must show evidence to claim a capital loss. The ATO is strict about this. → Mining and staking rewards are income. If you mine or stake crypto, the rewards count as ordinary income at the time you receive them. Later, when you sell, you may also pay CGT on any gains. → NFTs are not exempt. Buying and selling NFTs is also a taxable event. The same rules apply as with other crypto assets. → The ATO uses data-matching. Exchanges report to the ATO. If you think you can hide your trades, you’re wrong. The ATO has sent thousands of letters to crypto users in recent years. Here’s how to stay on top of it: - Keep detailed records of every transaction: date, value in AUD, what you bought or sold, and who you traded with. - Use crypto tax software or a spreadsheet. Don’t rely on memory. - Report all gains and losses in your tax return. - If you’re unsure, get advice from a tax professional who understands crypto. Crypto is not a tax-free playground. It’s a new asset class, but the tax rules are old and strict. Don’t get caught out. Understand the rules, keep good records, and stay ahead of the ATO. That’s how you win the crypto game in Australia.

From January 2026, HMRC will get crypto transaction data directly from UK exchanges and wallets under CARF. This is not a new tax. It is new visibility. If you hold or trade crypto in the UK, do these now: 1) Reconcile every wallet and exchange. Fix missing and duplicated entries. 2) Track disposals and cost basis. Remember CGT allowance is small and easy to exceed. 3) Log income events like staking, airdrops, mining, referrals. 4) Keep KYC info ready. Expect service providers to ask for full details. 5) If you have past unreported gains, use HMRC’s disclosure route before data starts flowing. Read our quick, practical guide with steps, checklists, and tools: https://lnkd.in/drENE7HF

Crypto Tax Crackdown Intensifies As UK Regulator Sends 65,000 Letters To Evaders — Details: ... crypto asset gains. This move reflects the increased tax scrutiny of cryptocurrency investors around the world over the past year. UK Tax ...

HMRC has issued a record number of warning letters to cryptocurrency investors suspected of underpaid tax this year—nearly 65,000 and climbing. With Bitcoin now worth more than £81,000, and crypto ownership at its highest yet in the UK, the tax authority is stepping up its scrutiny. From January, exchanges like Kraken and Coinbase will be required to submit detailed customer data straight to HMRC. The aim? To make it harder for investors to underreport profits and to ensure compliance before tougher measures kick in. Yet, the majority of crypto holders still admit they’re unclear on tax rules for digital currencies. If you’re invested in crypto, are your tax affairs up to date? ⬇️ Read more

Crypto taxes are broken - and it’s costing everyday Americans. When I first started helping clients with crypto taxes nearly a decade ago, I thought the hardest part would be understanding blockchain. It wasn’t. The real problem is the tax system itself. Traditional taxes rely on middlemen - employers, brokers, banks - all reporting income for you. Crypto doesn’t. It leaves millions of people to track thousands of transactions across wallets and chains - by themselves. And when they do it right, the IRS still makes them prove it line by line. I’ve seen what that looks like up close. One client was audited for routine stablecoin transactions - tokens that never moved from one dollar. The IRS claimed six figures of phantom gains. That case is still in Tax Court. But it’s a reminder that outdated rules don’t just confuse - they punish. Here’s the scale of the problem: 1 in 5 Americans own crypto. Fewer than 21,000 have ever invested in Opportunity Zones. Yet Opportunity Zones have thousands of pages of IRS guidance. Crypto? Just a handful of notices. The IRS has shown it can create clarity when it wants to. It did it for Opportunity Zones. It can do it here, too. This isn’t just a policy issue - it’s a fairness issue. Because taxes touch everyone: Every investor. Every startup. Every builder trying to do the right thing. That’s why I believe crypto taxes are the defining fight for this industry. It’s about giving Main Street the same chance the big players have - clear rules, fair treatment, and a tax system that works for innovation, not against it. If you’ve faced crypto tax confusion or an unfair IRS claim, I’d love to hear your story. These are the stories Washington needs to hear.