February’s tax-policy dialogue around crypto expanded across several jurisdictions, underscoring a global shift toward clearer reporting and new levies on digital assets. The year’s early momentum included a critical test for Bitcoin (CRYPTO: BTC), which struggled to reclaim the $70,000 level as policy debates intensified in Washington and abroad. While some governments signaled tighter controls, others moved toward formalizing frameworks that could steer crypto activity into more transparent channels. A snapshot of the month shows four countries weighing heavier capital-gains rules, new reporting standards, and targeted taxes on transfers, while the broader market wobbled amid tariff talk and uncertain regulatory progress.
Key takeaways
- The Netherlands advanced a controversial Actual Return Act on Feb. 12, proposing a 36% capital gains tax on unrealized gains for savings, liquid investments, and crypto. The plan, backed by a majority in the lower house, faced steep criticism that it could drive capital out of the country and dampen crypto activity.
- Israel’s Crypto Blockchain & Web 3.0 Companies Forum launched a lobbying push to reform crypto tax rules, seeking looser treatment for stablecoins and tokenization and a simpler path to compliance. Forum head Nir Hirshmann-Rub cited broad public exposure to crypto, with more than a quarter of the population engaging in crypto dealings in the past five years.
- Hong Kong signaled that it would adjust its tax regime to align with the OECD’s Crypto-Asset Reporting Framework (CARF), expanding the region’s framework for reporting crypto activity and improving transparency for tax authorities.
- Vietnam tabled a crypto-transaction tax proposal that would levy 0.1% personal income tax on transfers conducted through licensed service providers, while exempting typical value-added tax on crypto trading and transfers.
- India persisted with a rigid tax structure—an approximate 30% tax on crypto gains with no losses offset—while calls for reform remained unaddressed in the 2026 Union Budget.
Tickers mentioned: $BTC
Market context: February’s policy moves arrived as crypto markets faced a mix of regulatory signals, macro headwinds, and evolving tax reporting standards. The expansion of crypto ATMs remained a notable trend, with the number of kiosks approaching 40,000 globally and February adding about 290 machines to the network, per Coin ATM Radar data—an indication that on-ramps continue to grow despite policy frictions.
Why it matters
The policy shifts highlighted in February matter for users, investors, and builders because they delineate the path crypto assets may follow toward formal taxation and regulated activity. The Netherlands’ push for unrealized-gains taxation signals a broader trend toward treating crypto like other financial assets in the context of annual returns, even as the cabinet signaled a readiness to revisit the draft. If enacted, the plan could alter hold strategies for both individuals and institutions and influence cross-border capital flows within the eurozone and beyond. Regulators and industry players alike will be watching how the government balances taxation with maintaining competitiveness and preserving crypto innovation.
Israel’s lobbying push reflects a more nuanced approach to crypto regulation in jurisdictions with high public adoption. Forum leaders are arguing for a framework that relaxes certain restrictions around stablecoins and tokenization while making compliance simpler for businesses and individuals. If successful, the policy would reduce the friction for Israeli-based crypto ventures and broader adoption, potentially encouraging more crypto-related activity in the region and setting a model for nearby markets grappling with similar regulatory questions.
In Hong Kong, CARF adoption would integrate crypto activity into a standardized reporting framework designed to combat tax evasion and improve transparency. The move aligns Hong Kong with a growing global push to require crypto service providers to report on client activity, which could boost tax compliance and oversight while potentially affecting the cost and ease of doing business in the city’s vibrant crypto ecosystem.
Vietnam’s proposal laid out a targeted tax that could affect on-chain transfers routed through licensed providers while preserving an exemption for ordinary value-added tax on crypto trading. If enacted, the policy would further define the tax treatment of crypto transactions in a fast-growing market and add new considerations for crypto exchanges and custodians operating there. The country’s stance contrasts with other jurisdictions that treat crypto differently for VAT and income-tax purposes, underscoring the difficulty of creating a one-size-fits-all approach to digital assets across Asia.
India’s remain-rigid stance—30% gains taxation with no loss offset—continues to draw scrutiny from market participants calling for reform. As Asia’s second-largest crypto market by adoption, India’s tax approach can influence regional flows and investor confidence. The absence of reform in the 2026 Union Budget underscores the frictions between revenue-raising objectives and the desire to foster a healthy innovation environment for crypto tech and related services.
Beyond policy, February’s price narrative for Bitcoin revealed ongoing pressure from macro factors and regulatory headwinds. Analysts pointed to a lack of progress on the CLARITY Act in the U.S.—a proposed framework for crypto markets that has repeatedly stalled due to disagreements over ethics provisions and potential bailout measures. The stalemate, paired with tariff-related uncertainty, contributed to a cautious mood among traders, with Bitcoin often trading under the $70,000 mark during the month. Industry voices also underscored tariff policy as a drag on risk assets; for example, remarks from market participants highlighted tariffs as a significant factor shaping Bitcoin’s price trajectory in a period of broader market caution.
In parallel, the economic backdrop in Japan—where inflation in the yen slipped below 2%—added another layer of complexity. The market environment, including elections and a potential shift in consumer demand for risk assets, may influence how Bitcoin and other crypto assets perform in the near term in relation to traditional markets. The broader global context—ranging from central-bank policy to cross-border regulatory coordination—continues to shape how crypto assets are perceived, taxed, and utilized by both individuals and institutions.
On the corporate front, a prominent narrative in February involved bets on traditional finance institutions expanding exposure to Asia-focused opportunities. Berkshire Hathaway’s ongoing accumulation of Japanese trading-house investments signaled that blue-chip capital continues to seek diversification through overseas equities, which may indirectly influence risk sentiment surrounding crypto assets and the appetite for cross-asset diversification during times of policy flux.
What to watch next
- Netherlands: The cabinet’s plan to revive or amend the Actual Return Act could reframe unrealized gains taxation in the eurozone; watching parliamentary debates and potential Senate discussions is essential in the coming weeks.
- Israel: Regulatory push-and-pull around stablecoins and tokenization—monitor proposed bills or regulatory guidance, and any shifts in compliance requirements for crypto firms.
- Hong Kong: Implementation timeline for CARF and any ancillary reporting rules that affect crypto service providers and custodians operating in the region.
- Vietnam: The enforcement trajectory of the 0.1% personal income tax on licensed transfers, including guidance for exchanges and custodians serving Vietnamese users.
- India: The 2026 budget process and potential reform proposals for crypto taxation; market participants will look for signals that losses may be offset or more favorable tax treatment might be introduced.
Sources & verification
- Netherlands tax-law advancement and unrealized gains framework (Feb. 12) — https://cointelegraph.com/news/dutch-house-advances-36-tax-law
- Discussion of unrealized gains tax and concerns about capital flight — https://cointelegraph.com/news/netherlands-unrealized-gains-tax-stocks-crypto-box-3
- New Dutch cabinet comments on reconsidering the measure — https://nltimes.nl/2026/02/25/new-dutch-cabinet-pulling-back-box-3-asset-tax-plan-unrealized-gain-tax-fears
- Israel crypto lobbying and reform discussions — https://cointelegraph.com/news/israel-crypto
- Hong Kong CARF and tax-infrastructure tweaks — https://cointelegraph.com/news/hong-kong-expand-tokenized-bond-infrastructure-hkma-platform
- Vietnam crypto-tax proposal and policy posture — https://cointelegraph.com/news/vietnam-crypto-tax-0-1-percent-trading-levy-draft-policy
- India crypto tax stance in 2026 budget discussions — https://magazine.cointelegraph.com/eth-whale-panics-india-crypto-tax-asia-express/
February’s regulatory tinkering and Bitcoin’s price test
February’s policy reshaping of crypto taxation reflected a broader, global push toward greater transparency and stricter oversight of digital assets. The Netherlands’ proposed 36% unrealized-gains levy, if enacted, would change the calculus for savers, investors, and crypto holders who have benefited from tax-deferred gains in a relatively open market. The stance triggered swift counterpoints from opponents who warned about capital flight and reduced innovation. The cabinet’s decision to revisit the measure indicates a practical sensitivity to the political risks of sweeping asset taxation, and it preserves the possibility that policy may shift before a final vote.
In parallel, Israel’s engagement signals a pragmatic approach to policy that aims to balance investor protection with a permissive stance toward fintech innovation. The lobby’s emphasis on a simpler compliance regime and a more flexible stance on stablecoins suggests policymakers could carve out a niche that encourages crypto participation while maintaining tax visibility and controls. The public’s demonstrated familiarity with crypto—a substantial portion of the population already engaged—adds political weight to those arguments, potentially shaping future regulation.
Hong Kong’s alignment with CARF marks another step toward standardizing crypto-tax reporting in an era of cross-border digital finance. As jurisdictions seek to curb evasion and improve revenue collection, CARF participation could influence how service providers structure operations and how users report activity. Vietnam’s targeted approach—0.1% personal income tax on transfers through licensed providers—adds to a growing spectrum of country-specific tax policies, underscoring the complexity of harmonizing treatment for holders, traders, and platforms across Asia.
India’s unchanged stance—30% gains taxation with no loss offset—highlights the tension between revenue considerations and the desire to foster a robust crypto ecosystem. With investors watching for reform signals in the 2026 budget cycle, the Indian policy environment will likely shape regional flows and influence global risk sentiment in crypto markets. Meanwhile, Bitcoin’s price action remained cautious, with the asset hovering near but not breaching the $70,000 level in February. The absence of progress on the CLARITY Act, alongside tariff-related tensions in U.S. policy, contributed to a cautious mood among traders who weigh macro dynamics, regulatory clarity, and the evolving tax landscape as they map out next moves.
What to watch next
- Israel’s regulatory roadmap—watch for concrete proposals or guidance detailing how stablecoins and tokenization might be taxed and regulated.
- CARF implementation in Hong Kong—monitor dates and any sector-specific exemptions or reporting thresholds.
- Vietnam’s enforcement timeline—track how the 0.1% tax applies to licensed platforms and the treatment of cross-border transfers.
- India’s budget updates—note any shifts in crypto taxation or loss-offset rules that could affect market activity.
- U.S. regulatory progress on the CLARITY Act and tariff policy—keep an eye on committee movements and potential bailouts or ethics provisions that may alter risk sentiment.