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US, UK and EU cryptocurrency tax regulation upgrades, investors need to be vigilant about key tax rates and compliance requirements

The United States, the United Kingdom, and the European Union are strengthening tax regulation of cryptocurrencies, with important implications for investors. In the United States, cryptocurrencies are considered digital assets, and the sale or transaction is subject to capital gains tax, which depends on the time of holding and income level; miners and pledged profits are subject to income tax, and user data must be reported for transactions from 2025. In the United Kingdom, the sale or exchange of cryptoassets is subject to capital gains tax, which can be taxed at a rate of up to 24%, and the exemption is £3,000 per year; mining income and crypto salary income are subject to income tax and national insurance contributions. In the European Union, tax rates vary from country to country, such as Germany's exemption for holding for more than one year, while Spain's tax rate is as high as 28%; MiCA regulations, which come into effect in 2025, will harmonize some rules and enhance tax transparency.