Regulatory Scrutiny - UK tax authority HMRC sent "nudge letters" to approximately 65,000 suspected crypto tax evaders, more than double the previous year's figure [1] - HMRC will leverage exchange data to monitor tax evasion [1] - Starting in 2026, HMRC will collect detailed user information under the OECD's CARF framework [1] Tax Implications - In the UK, selling or spending crypto is subject to capital gains tax [1] - Staking and airdrops are considered income for tax purposes in the UK [1]

Core Insights - Indian tax authorities are investigating over 400 high-net-worth traders using Binance for suspected large-scale crypto tax evasion [1][9] - The investigation is led by the Central Board of Direct Taxes (CBDT) and focuses on activities from 2022 to 2025, with findings due by October 17 [3][9] Taxation Details - The traders under investigation allegedly evaded India's high crypto tax rates, which include a 1% withholding tax on transactions and a 30% tax on profits, leading to an effective tax rate of 42.7% for top earners when surcharges and a 4% cess are included [4][9] Regulatory Environment - The Indian government maintains a strict stance on digital assets, with recent reaffirmations of commitment to a central bank digital currency (CBDC) while heavily taxing private cryptocurrencies [5] - Binance was banned from operating in India in late 2023 due to accusations of violating the Prevention of Money Laundering Act, but later re-entered the market in August 2024 after paying a $2.25 million fine and registering as a "reporting entity" [5][6] Investigation Focus - The investigation also examines peer-to-peer (P2P) transactions conducted through Binance, which were settled using local bank accounts, Google Pay, or cash, with authorities suspecting these methods may have concealed taxable income [6][7] - Although cash settlements have been discontinued, the ongoing scrutiny adds to the regulatory challenges faced by Binance, which is also dealing with issues related to token depegs and system failures in other markets [7]

According to The Korea Daily, South Korea’s National Tax Service (NTS) is intensifying its crackdown on crypto tax evasion, warning that even cold wallets may be subject to search and seizure. The NTS said it uses blockchain analysis tools to track on-chain activity and will confiscate hard drives or cold wallets if assets are suspected to be hidden offline. Over the past four years, the agency has seized and liquidated ₩146.1 billion ($108 million) in crypto from 14,140 tax delinquents.https://t.co/mtBC8zS ...