The taxman cometh. In February, tax authorities in multiple countries reconsidered how they tax crypto.
In the US, the number of crypto ATMs returned to nearly 40,000, matching 2021 levels after a steep drop following the 2022 crypto crash. Japan’s inflation fell below 2% in February, lower than the US rate. Berkshire Hathaway CEO Warren Buffett said dollar investments looked less attractive as the yen offered more stability.
Bitcoin (BTC) remained stuck below $70,000 in February. Observers pointed to several macro pressures, including US tariff actions, which have weighed on the asset. President Donald Trump’s new 10% tariff increase has done little to ease market concerns.
Four countries consider changes to crypto tax laws in February
The Netherlands’ lower house advanced a proposal on Feb. 12 to introduce a 36% capital gains tax on unrealized gains in savings and liquid investments, including crypto. Critics warned it would push money out of the country. The new Dutch cabinet said it will reconsider and amend the bill after widespread criticism.
In Israel, the Crypto Blockchain & Web 3.0 Companies Forum launched a lobbying effort to reform crypto tax laws. Forum leader Nir Hirshmann-Rub said public support is broad for relaxed rules on stablecoins and tokenization and for simplified compliance; surveys suggest over 25% of Israelis had crypto dealings in the past five years and more than 20% currently hold digital assets.
Hong Kong’s Financial Secretary Paul Chan said the territory will tweak its tax laws to implement the OECD’s Crypto-Asset Reporting Framework (CARF), a global standard requiring crypto service providers to report client activity to combat tax evasion.
Vietnam proposed a crypto transaction tax that would exempt transfers and trading from VAT but impose a 0.1% personal income tax on transactions conducted through licensed service providers.
India, which already imposes a flat 30% tax on crypto gains without allowing loss offsets, saw calls for reform ignored in the 2026 Union Budget despite intense lobbying.
Bitcoin stays below $70,000; tariffs, regulation weigh
Bitcoin struggled to break $70,000 in February. Analysts cited macro pressures including stalled legislative progress on the US CLARITY Act, with lawmakers unable to agree on ethics, bailout provisions, and stablecoin rules. Fed governor Chris Waller said the lack of a CLARITY Act contributed to investor caution.
Tariffs added to uncertainty. After the US Supreme Court invalidated tariffs imposed under the 1977 IEEPA, the administration raised global tariffs 10% using the Trade Act of 1974. Market observers linked tariffs to a drag on risk assets generally and on Bitcoin specifically; Swan CEO Cory Klippsten said tariffs were the biggest drag on Bitcoin price over the past year.
Japan’s inflation dips below 2%; Takaishi wins elections
Japan’s inflation rate fell below 2%, its lowest in three years. Prime Minister Sanae Takaishi called snap elections to restore the Liberal Democratic Party’s majority — a gamble that succeeded, giving the LDP a two-thirds majority in the House of Representatives (316 seats). Japanese markets rallied: the Nikkei 225 rose about 10% in February after the Feb. 9 election.
A stronger yen and attractive Japanese assets could present short-term headwinds for Bitcoin, which has shown correlations with equities. Increasing attractiveness of Japanese bonds and equities could divert flows from US equity ETFs and crypto. Buffett said Berkshire Hathaway will continue to increase investments in Japanese trading houses (Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo).
Crypto ATMs near 40,000 as operators tighten controls
Global crypto kiosks rose by 290 in February to nearly 40,000, per Coin ATM Radar. The total had fallen sharply after the 2022 crash. Regulators have expressed concern about ATMs’ potential for money laundering and scams; operators have responded with stricter controls. In February, the largest US Bitcoin ATM operator, Bitcoin Depot, began phasing in mandatory user ID verification at its terminals following regulatory pressure.
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