Cryptocurrency Tax Regulations: What to Expect in 2025

Cryptocurrencies are treated as property in many jurisdictions, subjecting them to capital gains tax upon disposal. However, the specifics vary:

United States: The Internal Revenue Service (IRS) classifies cryptocurrencies as property. Taxpayers must report transactions, including sales, exchanges, and income received in digital assets. In June 2024, the IRS issued final regulations requiring brokers to report sales and exchanges of digital assets starting in 2025, reported by the IRS.

European Union: The EU is working towards a unified approach. The Markets in Crypto-Assets (MiCA) regulation aims to standardize cryptoasset regulations across member states, including tax reporting requirements, according to Reuters.

India: In 2022, India introduced a 30% tax on income from the transfer of cryptocurrencies and a 1% tax deducted at source (TDS) on transactions. Further clarifications and potential adjustments are expected by 2025.