U.S. crypto investors face major tax changes for 2025 trades, with new reporting rules taking effect for the 2026 filing season. Under the rollout of Form 1099-DA, centralized exchanges and brokers will report crypto sales to the Internal Revenue Service, initially focusing on gross proceeds and often excluding cost basis, according to BlockBeats. The shift to wallet-by-wallet cost tracking replaces pooled methods and may lead the IRS to assume a zero cost basis if records are missing. Tax experts warn that reconstructing historical ledgers is complex, and despite transitional relief under IRS Procedure 2024-28, many investors remain unprepared, increasing the risk of reporting errors without early action.

Binance founder CZ said on Dec. 31 that Pakistan could join the ranks of leading global cryptocurrency markets by 2030 if it maintains its current pace on regulation and real-world adoption, BlockBeats reports. He praised the country's leadership for moving quickly and recognizing demand for digital assets from its young, tech-savvy population, citing steps such as creating a virtual asset regulator, allowing Binance and HTX to operate in compliance, exploring Bitcoin reserves, and advancing real-world asset tokenization to attract foreign capital and improve liquidity. On stock market tokenization, CZ said this would allow global investors to access Pakistani assets directly and described it as a "truly global investment channel", adding that jurisdictions that move first may see the largest benefits.

Russia's Ministry of Justice proposed amendments to the Criminal Code on Monday that would impose fines of up to 1.5 million rubles ($19,000) and as much as two years of compulsory labor for illegal cryptocurrency mining. Mining operations generating large profits could face maximum penalties of five years in prison, 480 hours of compulsory labor and fines of up to 2.5 million rubles, while unregistered organized groups conducting large-scale illegal mining may face fines of up to 2.5 million rubles or five years of compulsory labor or imprisonment. Russian Deputy Finance Minister Ivan Chebeskov said only about 30% of crypto miners in the country were registered and operating legally as of June 19.

South Korea's Financial Services Commission (FSC) proposed capping major shareholders' stakes in domestic crypto trading platforms at 15% to 20%, KBS reported on December 30, citing the FSC's National Assembly briefing on the "Basic Digital Assets Act". The FSC classifies Korean exchanges with about 11 million users, including Upbit, Bithumb, Coinone and Korbit, as core infrastructure for virtual asset circulation and argues that a small group of founders and shareholders currently wields excessive control. Under the proposal, holdings of up to 30% would only be allowed for certain mutual funds or in special cases approved individually by the FSC, which could affect Upbit operator Dunamu, whose chairman holds about 25% of Upbit, and Bithumb, 73% owned by Bithumb Holdings Co., Ltd. Some participants in South Korea's crypto industry have criticized the plan, saying the government is attempting to impose regulation that goes beyond normal market standards.

Binance suspended Visa and Mastercard withdrawals via fiat provider Bifinity UAB for Ukrainian users on Dec. 30 due to regulatory policy changes, BlockBeats reports. A Binance spokesperson said the payment-method change applies only to Ukrainian users who previously used Bifinity and will affect some fiat deposit and withdrawal options. Crypto deposits, withdrawals and buy/sell remain available; users can still fund accounts with Visa and Mastercard, use Apple Pay and Google Pay for top-ups, and make deposits and withdrawals via Swift.

South Korea's government is drafting a Basic Act on Digital Assets that will introduce investor protection rules including no-fault liability for digital asset service providers and bankruptcy risk segregation for stablecoin issuers, Yonhap reported on Dec. 30. The draft requires stablecoin issuers to deposit reserve assets with banks or custodial institutions and maintain deposits or trusts covering at least 100% of outstanding issuance. Disagreements between the Financial Services Commission and the Bank of Korea over stablecoin issuing entities and supervisory authority have delayed the proposal's submission to next year, with the Financial Services Commission working to resolve these differences.

The Federal Reserve will release its monetary policy meeting minutes at 3:00 a.m. tomorrow, BlockBeats reports. Fed officials are split on inflation and economic risks. The minutes may outline reasons for pausing rate cuts and the expected duration.

House Financial Services Committee Ranking Member Maxine Waters criticized U.S. Securities and Exchange Commission Chair Gary Gensler’s approach to cryptocurrency regulation as Democrats’ odds of gaining control of the U.S. House of Representatives have improved, CoinDesk reported. The comments underscore ongoing disagreements between lawmakers and the SEC over the scope and direction of federal oversight of digital assets, according to the report.