1. Bank of Japan Maintains Interest Rates Unchanged link

On December 19, the Bank of Japan announced it would maintain its unsecured overnight call rate at 0.25%, leaving the policy rate unchanged. The yen weakened against the dollar, dropping to 155 for the first time since November. This marks the central bank’s third consecutive pause on rate hikes, with the decision passed by an 8-to-1 vote.

2. Japan’s Crypto Tax Reforms May Take Shape by 2025 link

At a joint meeting of the Tax System Committees and Tax Research Committees of Japan’s Liberal Democratic Party and Komeito Party, the final outline of the 2025 fiscal tax reform was approved. Currently under “review,” the reforms may introduce a 20% separate self-assessment tax rate for cryptocurrencies and a loss carryforward system. The outline also confirmed an increase in the deduction amount to 1.23 million yen. Japan’s current cryptocurrency tax rate reaches as high as 55%, significantly higher than other countries, undermining the industry’s competitiveness.

3. Hong Kong Pledges Crypto Asset Disclosure Framework, Targets Legislative Revisions by 2026 link

The Hong Kong government recently announced its commitment to implementing a cryptocurrency asset reporting framework as part of its pledge to the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes. This initiative aims to enhance international tax transparency and combat cross-border tax evasion. Hong Kong will adopt the reporting framework on a reciprocal basis with suitable partners that meet standards for confidentiality and data security. In line with the Global Forum’s latest timeline, the government plans to complete the necessary local legislative amendments by 2026 and initiate the first automatic exchange of information with relevant tax jurisdictions under the framework by 2028.

4. The Mainland of China’s Weekly News

4.1 Lawyer: Crypto Studio Penalized for VPN Usage link

According to an administrative penalty decision disclosed by lawyer Wu Enxiang, a virtual currency studio in Xianning, Hubei Province, was penalized for unauthorized use of non-statutory channels for international internet access via VPN. The studio engaged in purchasing a virtual currency at a low price and reselling it at a higher price, violating regulations. Authorities issued a warning, imposed a fine of 15,000 yuan, confiscated illegal gains totaling 90,000 yuan, and seized eight mobile phones and eight computers used in the operation.

4.2 Chongqing Police Investigate “Dingyifeng” Illegal Fundraising Case, Assets Frozen Nationwidelink

On December 20, the Chongqing Municipal Public Security Bureau Liangjiang New Area Division announced that it had launched an investigation into Zuo Jianling and others from “Jinding Group,” a subsidiary of “Ding Yifeng,” on suspicion of illegally absorbing public deposits. Authorities pledged to expedite case handling, asset recovery, and loss mitigation.

The case involves attracting public investments under the guise of “fraudulent financial products” and “DDO digital options” (suspected to be a worthless token), with substantial investment amounts. Previously, Shenzhen police imposed criminal measures on the suspects, while the Hong Kong Securities and Futures Commission froze over HKD 6.3 billion in related assets and issued interim injunctions prohibiting their transfer or disposal. The investigation is ongoing.

5. Former Korean Lawmaker Kim Nam-Kook Faces Six-Month Sentence for Concealing ₩10 Billion in Crypto Assets link

According to The Dong-A Ilbo, on December 18, South Korean prosecutors recommended a six-month prison sentence for former Democratic Party lawmaker Kim Nam-guk, citing falsified property declarations to the National Assembly. Kim is accused of concealing cryptocurrency assets worth approximately 9.9 billion KRW in 2021 and 2022 by converting part of the holdings into bank deposits to adjust his reported total assets, while retaining the remainder as cryptocurrency.

Prosecutors argued that this was an intentional act to obstruct property reviews conducted by the National Assembly Public Officials’ Ethics Committee, motivated by his failure to disclose cryptocurrency holdings. The case is currently under trial.

6. Philippines Department of Finance Launches Blockchain-Based Bond System, Investment Starts at $9 link

The Philippine Department of Finance has announced the launch of a government bond program with a minimum investment amount of 500 pesos (approximately $9). The initiative aims to expand access to small and medium-sized investors by leveraging the services of virtual asset company PDAX and fintech firm GCash. The program will operate on a distributed ledger technology (DLT)-based registration system alongside the existing paperless National Registry of Scripless Securities (NRoSS), with the goal of popularizing bond investments. Currently, less than 0.5% of the Philippine population participates in bond investments.

7. Singapore Central Bank Grants Digital Token Service Licenses to 30 Payment Firms link

According to Bloomberg, approximately 30 payment companies have received digital token service licenses from the Monetary Authority of Singapore, including U.S.-based Coinbase and Ripple, as well as Hong Kong-based Futu. A survey conducted earlier this year by the exchange Independent Reserve revealed that around 40% of Singaporean investors own cryptocurrencies.

8. Indian Tax Authority: Capital Gains Tax Required on Crypto Earnings Before 2022 link

The Income Tax Appellate Tribunal (ITAT) in Jodhpur, India, ruled that profits from the sale of cryptocurrencies before the introduction of the Virtual Digital Asset (VDA) regime in 2022 should be treated as capital gains. This ruling classifies cryptocurrencies, including Bitcoin, as capital assets, resolving previous ambiguity surrounding cryptocurrency taxation. The case involved an individual who purchased Bitcoin worth $6,478 in 2015–16 and sold it for $788,000 in 2020–21. The individual argued that since the holding period exceeded three years, the profit should be considered long-term capital gains. Initially, tax officials disagreed, stating that cryptocurrencies lacked intrinsic value and could not be classified as property. However, the court ruled that since the holding period exceeded three years, the profit met the criteria for long-term capital gains, allowing the taxpayer to claim deductions under current law. ITAT dismissed the tax officer’s argument, stating that under Section 2(14) of the Income Tax Act, cryptocurrencies qualify as property. The court emphasized that any kind of property held by the taxpayer, including rights or claims to assets, falls within the definition of capital assets.

9. Hong Kong-Listed Kingkey Financial International Establishes Investment Committee link

Hong Kong-listed company Kingkey Financial International announced the establishment of an Investment Committee, effective from December 15, 2024. The committee will be responsible for reviewing appropriate transactions and investment strategies related to virtual assets (cryptocurrency), as well as the management of such assets, providing recommendations to the board. Kingkey Financial International stated that integrating cryptocurrency investments into the group’s asset allocation, alongside its green energy and artificial intelligence investment strategies focused on green energy, will enhance the overall financial position of the group.

10. Bitcoin Mining Rig Prices Surge in Huaqiangbei, Buyers Mainly from Russia, USA, and Canada link

Driven by the surge in Bitcoin prices, the price of Bitcoin mining machines in Huaqiangbei, Shenzhen, has seen a significant increase. The Antminer S21 335T is now priced at $5,600 per unit (approximately 40,700 RMB), a 30% rise from last year. High-performance models, such as the S21 XP liquid-cooled miner, are sold out on the official website, indicating a supply shortage in the mining machine market. Buyers primarily hail from regions like Russia, the United States, and Canada, with some purchasing hundreds or even thousands of machines at once. The low electricity rates in these regions — such as 0.37 RMB per kWh in Canada and as low as 0.2 RMB per kWh in Russia — offer miners substantial profit margins.

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