A Texas bitcoin (BTC) investor is facing two years in prison after becoming the first person in history to be criminally charged for failing to report capital gains earned from crypto.

According to a US Department of Justice (DoJ) report from December 12, Frank Richard Ahlgren III “falsely underreported the (realized) capital gains” earned from selling Bitcoin worth $3.7 million between 2017 and 2019.

The report detailed how Ahlgren was an early investor in BTC and made his first purchases as early as 2011. In 2015, he bought approximately 1,366 BTC using his Coinbase account and sold 640 coins two years later for a total of $3.7 million. He reportedly used the proceeds to buy a house.

When it came time for Ahlgren to prepare his 2017 tax return, he lied to his accountant by submitting a false summary of his gains and losses from the sale of his BTC.

Specifically, he claimed that he bought the crypto at higher prices than he actually did, allowing him to underreport the true size of his gains. He also concealed gains on BTC sold for a total of $650,000 in 2018 and 2019 by moving it through multiple wallets and using mixers.

The total tax loss from Ahlgren’s activity totaled more than $1 million.

Read more: Ukraine to tax crypto like securities when it becomes legal next year

“Frank Ahlgren III earned millions buying and selling bitcoins,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

He added, “But instead of paying the taxes he knew were due, he lied to his accountant about the extent of a large portion of his gains, and sought to conceal another chunk of his profits through sophisticated techniques designed to obscure his transactions on the bitcoin blockchain. That conduct today earned him a two-year sentence.”

“Ahlgren will serve time because he believed his cryptocurrency transactions were untraceable. This case demonstrates that no one is above the law,” said Acting Special Agent in Charge Lucy Tan of IRS-Criminal Investigation (IRS-CI)’s Houston Field Office.

“This case marks the first criminal tax evasion prosecution centered solely on cryptocurrency. As the prices for cryptocurrency are high, so is the temptation to not pay taxes on its sale. Avoid the temptation and avoid federal prison.”

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Ukraine is expected to legalize crypto in early 2025 and its taxation will follow the model used for securities. This is according to the Head of the Ukrainian Parliament Committee for Finances, Tax and Customs Policy, Danylo Hetmantsev.

As reported by local outlet Ukrainska Pravda, a draft law on the taxing of virtual asset transactions in Ukraine was registered in the country’s parliament in November last year. The adoption of this document would mark a significant step toward the legalization of cryptocurrencies in Ukraine.

Speaking at a forum on domestic investment in Ukraine, Hetmantsev said, “If we’re talking about cryptocurrency, the [parliament’s] working group is finalizing a draft law for its first reading.

“I believe the text, developed in collaboration with the National Bank and the IMF, will be ready after the New Year. We aim to pass this law and legalize cryptocurrency in 2025’s first quarter.”

Read more: Michael Saylor says he’s paying bitcoin taxes, unlike ‘crypto-anarchists’

Hetmantsev also noted that crypto taxation will follow the model used for securities. In other words, profits will be taxed when assets are converted into currency.  

“In consultations with European experts and the IMF, we are taking a very cautious approach to using cryptocurrencies for tax exemptions, as it could potentially facilitate tax evasion in traditional markets,” he explained.

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The personal details of some of Norway’s largest crypto investors, who between them hold tens of millions of dollars worth of assets, have been revealed by the Norwegian news site TV2.

TV2 published the list on December 4, tracking the income and overall wealth of prolific crypto holders using Norway’s publicly visible tax return system.

At the top of the wealth list, there are Terje Øvrehus, Kristoffer Daniel Norambuena, and Alexander Leonard Larsen, who hold $32.7 million, $28.8 million, and $28 million in assets respectively.  

Øvrehus is known for his bitcoin investments, Norambuena is reportedly unknown to TV2, and Larsen is the co-founder of controversial crypto gaming firm Axie Infinity. Their declared incomes, however, are significantly less. Øvrehus has an income of $57,000, Norambuena has an income of $0, and Larsen has an income of $1.3 million.

Norway’s public tax ledger isn’t for everyone

In Norway, everyone’s tax returns are publicly available on request and will include an individual’s full name and date of birth. This transparent tax system has been around since the 1800s but was made easier to access with the advent of the internet.

For a while, searching for someone else’s tax returns was an anonymous affair. Then, in 2014,  tax authorities introduced a notification system that revealed who was looking up whose information. Norway’s media, on the other hand, is reportedly able to view returns without notifying the individual.

According to Bitcoin influencer @Hodlonaut, this is “completely insane,” and “putting a target on the back of all of these people.” Hodlonaut also claimed that the state is publishing, a “hit list.”

Podcast host and Bitcoin supporter Peter McCormack also chimed in, saying, “This is nuts.”

Read more: Police track $200K bitcoin robbery in Scottish first

Norway is known for its low crime rate, which Statista claims has fallen even further over the years. Despite this, the threat of in-person crypto robberies still spooks the community.

This year, a man from the US was convicted of leading a criminal crew that targeted and violently robbed the homes of crypto owners. In 2019, a group of armed thieves attempted to steal from a Norwegian bitcoin millionaire living in Oslo. He escaped after jumping from his balcony.  

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President-elect Donald Trump has signaled that his administration will take a friendlier approach to bitcoin and cryptocurrency, which may influence the way they are taxed in the US and abroad.

In the US, bitcoin and crypto are currently viewed as property. Short-term gains (less than one year) are taxed between 10% and 37%, depending on income. Similarly, long-term bitcoin and crypto gains are taxed between 0% and 20%.

US crypto holders may use their capital losses to offset their gains. For most individuals, the tax deadline is the same as for other assets: April 15.

Up to the north, Canada taxes just 50% of a casual investor’s capital gains. Tax rates follow Federal Income Tax and Provincial Income Tax, meaning bitcoin and crypto are taxed between 15% to 33% depending on income. Gains may be offset by 50% of capital losses.

Read more: CHART: How bitcoin and crypto are taxed in the EU

Across the pond in the UK, capital gains tax ranges from 10% to 20%. The UK also taxes mining, staking, and lending rewards between 20% and 45% (income tax).

France, meanwhile, simply has a 30% flat rate on bitcoin and crypto capital gains for the casual investor. Gains below €305 are tax free. This is similar to Italy, where the flat rate is 24% on bitcoin and crypto gains over €2,000. Recently, a rate hike to 42% has been floated but widely contested, and will likely change to 28%.

In Germany, the rate is between 0% and 45% depending on income. Finally, in Japan, gains exceeding 200,000 Japanese Yen ($1,300) are taxed between 15% to 55% depending on income. 

Please note these tax rates are for casual investors, are not exhaustive, and are subject to change.

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Hot on the heels of approving crypto mining regulations in Russia, President Vladimir Putin has inked a new law that classifies cryptocurrency as property, allowing its use in certain foreign trade settlements.

Signed on Friday, the document also exempts the mining and selling of crypto from value-added-tax (VAT).

Digital currency earned through mining is now classified in Russia as “income in kind” and taxed at market rates, while personal income tax is 13% up to 2.4 million rubles ($22,000) and 15% for higher amounts. Corporate income tax will be the standard 25%.

Crypto mining infrastructure operators will be required to report their clients to the tax authorities or risk a fine of 40,000 rubles ($370).

Under the new law, miners and traders will no longer be able to apply for certain tax cuts, such as single agricultural tax.

Read more: Russian investigator handed 16 years in jail for accepting 1,032-bitcoin bribe

The rather bullish move comes after Putin signed a law outlining the rights and obligations of crypto mining firms, which came into effect on November 1.

Existing non-registered entities were greenlit for mining operations subject to limits like an energy consumption cap. The law also gave the government the authority to ban crypto mining in certain territories.

Certain companies were also authorized to make international payments under the new law, via the Bank of Russia.

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The Dutch government is asking for feedback on a proposed bill that would require crypto service providers to exchange customer data with its tax authority, in order to align with EU legislation.

The bill will essentially put into Dutch law the European DAC8 Directive, which will come into effect across the EU on January 1, 2026. It requires crypto providers to annually collect, verify, and share user data with the tax authorities of all member states.

In addition, this Dutch bill will make the data accessible to non-EU countries that are also part of the OECD Crypto-Asset Reporting Framework (CARF). These countries include the US, Canada, Australia, the UK, Japan, Korea, Singapore, and South Africa.

Read more: Dutch police reveal darkweb probe behind $8.7M crypto seizure

The Dutch government plans to submit the bill by the second quarter of 2025. Its introduction won’t change anything for Dutch crypto owners. Tax returns will be filled out the same way. What it does alter is the level of responsibility on crypto exchanges and other service providers to properly report information, in order to prevent tax evasion.

The Dutch public has just under a month to share comments, opinions, and advice on this proposed bill (end date November 21).

Please note that your responses can be public, so refrain from sharing any sensitive information.

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Denmark is considering new tax rules on cryptocurrency, including taxing unrealized gains and losses, which has led to some misreporting that the decision has already been made.

Crypto news outlet AltcoinBuzz falsely reported that Denmark “has made history by becoming the first country in the world to tax unrealized capital gains on cryptocurrency.” Meanwhile, CoinGape wrote that Denmark “will impose a 42% tax on unrealized capital gains for all crypto assets.”

In reality, Denmark’s tax law council has proposed three separate models of taxation in a paper it has been working on since 2021. None of these tax proposals have been adopted in any official capacity.

Even if one were agreed upon at press time, these rules most likely wouldn’t take effect until 2026.

Here’s what actually happened

Tax Minister Rasmus Stoklund announced on Wednesday that the Tax Law Council had submitted up-to-date recommendations to “ensure more reasonable taxation of crypto investors’ gains and losses.”

The 93-page report recommends that all cryptocurrency assets should be taxed the same, in order to remove the heavy taxations that some crypto holders must pay.

Though three separate taxation models are proposed in the report, the Tax Law Council appears to recommend an inventory taxation model. Here, all assets — including stocks and bonds — would be lumped together and valued. The total change in value is taxed.

Read more: Michael Saylor says he’s paying bitcoin taxes, unlike ‘crypto-anarchists’

“The Tax Law Council’s recommendations imply that the asymmetry in the taxation of gains and losses disappears,” the Skatteministeriet wrote in its press release. “That is, investors can deduct losses in gains on other crypto assets.

“In addition, the recommendations make it possible to set off gains on crypto assets against losses on financial contracts – and vice versa. The so-called inventory taxation occurs as capital income and in return implies that the taxation occurs continuously, regardless of whether crypto-assets have been sold,” (translated from Danish).

The Danish parliament will be presented a bill somewhere in early 2025, and it must then carefully evaluate the report before any decision is made.

The crypto tax report comes hot on the heels of a scheduled 50% hike in Italy, where capital gains tax on cryptocurrency is set to rocket from 26% to 42%.

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MicroStrategy CEO Michael Saylor recently defended his belief that large financial institutions will end up owning a large and ever-growing portion of bitcoin’s supply. In an interview that he proudly posted to X and YouTube, Saylor claimed that the Bitcoin network will improve as companies and governments displace “crypto-anarchists.”

When asked about the risk of government seizure as third-party custodians hold more bitcoin on behalf of their customers, Saylor responded, “I think that when the bitcoin is held by a bunch of crypto-anarchists who aren’t regulated entities — who don’t acknowledge government or don’t acknowledge taxes or don’t acknowledge reporting requirements — that increases the risk of seizure” (emphasis in original).

Saylor insinuated that institutions like BlackRock or MicroStrategy, unlike self-sovereign Bitcoiners, will reliably file and pay their taxes.

The irony of that claim was immediately obvious to viewers, of course, given that Saylor himself has paid $40 million to settle claims that he evaded tax payments plus $8.5 million to settle claims of accounting fraud.

Saylor thinks 99.9% of the money doesn’t worry about government seizure

At another point in the interview, Saylor continued to chuckle at Bitcoiners who insist on self-custody. “You have an OG crypto community that’s very hardcore about it, but if you look at where all the money is — 99.9% of the money — is actually in the traditional economy.”

Saylor repeated his disrespect for one of the oldest communities in cryptography. He claimed that the risk of seizure is mostly a concern for “paranoid crypto-anarchists.” 

He also hand-waved away the risk of an actual government seizure of bitcoin, calling it a “trope” that repeats in a pointless loop. He noted that the most recent example from history, the 1933 US gold seizure enacted by Executive Order 6102, did not result in any forceful seizures of gold.

Read more: Did Michael Saylor pay Bitcoin developers to stop working?

‘Paranoid crypto-anarchists’

Comments rained in from the Bitcoin community and many accounts switched their username to “paranoid crypto-anarchist.” “Terrible look for Saylor to become a shill for the government,” wrote one observer. “My trust in Saylor has cratered with the latest interview,” claimed another, while someone else asserted, “Saylor is an enemy of bitcoin.”

Others predicted the demise of Saylor in some future Bitcoin network split. “When the Blackrock forkwar happens, he has a huge incentive to be on the regulatory compliant side of the chain split,” wrote Michael Ruiz.

The co-founder of Simply Bitcoin took the opportunity for self-reflection, “Saylor didn’t shill himself as some bitcoin prophet, you did. The enablers are the real culprits.”

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Ohio state senator Niraj Antani has proposed a bill that would allow residents and businesses to pay taxes using cryptocurrencies. Bitcoiners immediately rejoiced, reposting the news to thousands of likes and over 100,000 views.

While the proposal aims to position Ohio as a leader in crypto adoption, it faces significant skepticism regarding its viability. In short, the bill is exceedingly unlikely to become law.

The state legislator’s proposed law would compel the state and “all local political subdivisions” to accept bitcoin and other cryptocurrencies as a form of payment for state and local taxes. The bill would also allow state universities and pension funds to invest in crypto.

The bill’s chances of success are slim. Introducing legislation is a common way to express gratitude for donations, signal intention for general policy direction, or other intentions that are distinct from actually advancing the bill into law. Even in the most serious legislature in the country on Capitol Hill, less than 5% of bills ever become law.

Attempting to revive Ohio’s failed crypto tax law

Moreover, the state senator’s introduction is not Ohio’s first attempt to permit crypto-denominated taxes. In 2018, the state briefly claimed to accept bitcoin for tax payments through OhioCrypto.com. However, the Ohio State Board of Deposits never approved that program, and it was quickly suspended on advice of the Ohio Attorney General.

Now re-introduced thanks to senator Antani – if the legislature even agrees to consider the questionable proposal – the bill will face significant obstacles during its renewed legislative review.

Unlike the US dollar, which always pays a non-fluctuating value of USD-assessed taxes, cryptocurrencies are notoriously volatile. Volatility during tax form preparation and filing or even during the window of receipt could complicate tax collection and expose the state treasury to financial risks.

There are also significant regulatory hurdles, including opposition from the Ohio State Board of Deposits and the Ohio Attorney General based on a similar, failed initiative from 2018.

In addition, there are security risks regarding accepting non-USD payments, as a disturbing number of hacks and scams raise serious questions about the security of such a system for tax collection. Whether any particular cryptocurrency will hold its value even for a few minutes is a question of perennial debate.

So, while a state senator believes that ‘crypto is vital’ and sees his bill as a way to restore Ohio’s leadership in crypto, the proposal for crypto-denominated tax payment faces an uphill battle. The bill must navigate through the Ohio General Assembly and gain the governor’s signature. Along that circuit, it will likely face intense scrutiny and debate.

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Another day, another fake headline from a crypto influencer. Today, in an alleged first-ever announcement for a state government, Louisiana supposedly announced its acceptance of crypto for the payment of taxes.

There is just one problem with that incredible news: It never happened.

According to a screenshot and post to X (formerly Twitter) by BitcoinNews.com, Louisiana residents “can now use bitcoin and Bitcoin Lightning Network to pay taxes and fees.” Unfortunately, a fact check reveals that they cannot.

According to BitcoinNews.com, Louisiana’s Department of Wildlife and Fisheries accepted bitcoin via the Lightning Network. However, per the actual announcement from Louisiana’s Department of Wildlife and Fisheries, point-of-sale provider Bead Pay accepted bitcoin from a resident, facilitated its sale into US dollars, and then deposited US dollars into a state government bank account.

Read more: No, Russia did not just lift its ban on domestic crypto use

For the state of Louisiana, the payment denomination was identical to any regular check, credit card, debit card, or bank transfer. Louisiana never accepted any crypto asset. It only received USD.

Indeed, no US state nor government accepts payment of taxes in digital currencies.

Protos has debunked a prior news announcement from BitcoinNews.com that falsely claimed that the state of California had adopted bitcoin.

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