Crypto Taxes Revised, BTC Held Below $70K: Month in Charts

Crypto taxes dominated headlines in February 2026 as four nations moved to reshape how they levy digital assets, while Bitcoin remained pinned below $70,000 amid mounting macroeconomic headwinds. From the Netherlands' polarizing unrealized-gains proposal to Vietnam's new transaction levy, the month delivered a wave of regulatory recalibrations. At the same time, the number of US crypto ATMs climbed back to nearly 40,000, returning to 2021 levels of interest in crypto kiosks. Japan's falling inflation rate raised fresh questions about capital flows into risk assets like BTC. Here is February by the numbers.

Global Crypto Tax Overhauls Shake Up February

Tax authorities across four jurisdictions launched efforts to rethink cryptocurrency taxation during February, making it one of the most active months for digital-asset fiscal policy in recent memory. The most contentious move came from the Netherlands, where the House of Representatives advanced a draft law on February 12 that would impose a 36% capital gains tax on unrealized gains from savings and liquid investments, including crypto holdings. The measure secured backing from 93 of 150 representatives, but fierce backlash quickly followed.

Critics warned the proposal would chase capital out of the country, and their objections appear to have gained traction. The new Dutch cabinet announced it would revisit the legislation, with a spokesperson stating, "There is a lot of criticism of the Actual Return Act. We are not deaf to that ... The bill needs to be amended. The Minister and State Secretary will discuss this with the Senate and parliament."

In Israel, the Israeli Crypto Blockchain & Web 3.0 Companies Forum kicked off a lobbying campaign aimed at overhauling the nation's crypto tax code. Forum leader Nir Hirshmann-Rub pointed to widespread adoption as justification, noting that more than 25% of the Israeli public has participated in crypto dealings over the past five years, with over 20% currently holding digital assets. He said there is broad public support to ease rules on stablecoins and tokenization, as well as simplify compliance requirements for everyday investors.

There is a lot of criticism of the Actual Return Act. We are not deaf to that ... The bill needs to be amended.

— Dutch Cabinet Spokesperson

Hong Kong and Vietnam Push New Crypto Frameworks

Hong Kong's Financial Secretary Paul Chan disclosed that the special administrative region is adjusting its tax laws to align with international standards. The Inland Revenue Ordinance will incorporate the Organisation for Economic Co-operation and Development's Crypto-Asset Reporting Framework, known as CARF. This global tax-exchange standard is designed to tackle crypto-related tax evasion by requiring crypto service providers to report on client activity to tax authorities.

Vietnam took a different path by proposing a dedicated crypto transaction tax. Under the plan, direct crypto transfers and trading would be exempt from the usual value-added tax. However, moving crypto assets through licensed service providers would trigger a 0.1% personal income tax on the transaction value. Meanwhile, India held firm on its existing 30% flat tax on crypto gains and continued to bar investors from offsetting losses, rejecting all lobbying efforts during the 2026 Union Budget process. Despite intense industry advocacy, the proposed budget did nothing to reform the country's crypto tax regime.

Why Is Bitcoin Stuck Below $70,000?

Bitcoin could not clear the $70,000 threshold at any point in February, weighed down by a combination of trade-war anxiety and stalled US crypto legislation. Many crypto observers have noted that US tariffs are putting significant pressure on the asset. Swan CEO Cory Klippsten identified tariffs as the single largest headwind, saying that trade levies have been "the biggest drag on Bitcoin price the past year" and represent a broader burden on risk assets compounded by uncertainty about future policy moves.

Federal Reserve Governor Chris Waller offered another explanation, pointing to legislative paralysis around the CLARITY Act -- the proposed US regulatory framework for cryptocurrency markets. Waller stated, "The lack of passing of the CLARITY Act I think has kind of put people off on this." Lawmakers remain deadlocked over ethics provisions and potential bailout clauses, while the crypto and banking lobbies are at loggerheads over stablecoin interest payments.

The tariff picture grew more complicated after the US Supreme Court struck down levies that President Donald Trump had imposed under the 1977 International Emergency Economic Powers Act. Trump responded by hiking global tariffs to 10% using the Trade Act of 1974 as an alternative legal foundation, adding yet another layer of uncertainty to an already jittery market. US President Trump's new 10% levy has done nothing to ease the pressure on risk assets.

The biggest drag on Bitcoin price the past year has been tariffs ... That's the drag on risk assets in general, and in particular [with] Bitcoin, there's just uncertainty around what's gonna happen.

— Cory Klippsten, CEO of Swan

Japan's Falling Inflation and the Yen's Rising Appeal

Japan's inflation rate dropped below 2% in February, reaching its lowest point in three years and falling beneath the US rate. The decline followed Prime Minister Sanae Takaichi's decision to call snap elections, a gamble that paid off handsomely. Her Liberal Democratic Party recaptured a commanding two-thirds supermajority in the House of Representatives with a 316-member majority, and Japanese stock markets responded enthusiastically. The Nikkei 225 surged roughly 10% on the month, spiking sharply after the February 9 election.

The strengthening yen could create headwinds for Bitcoin in the near term. BTC tends to correlate with US equities, according to XWIN Research Japan, and the growing attractiveness of Japanese government bonds may divert capital away from US equity exchange-traded funds. Berkshire Hathaway CEO Warren Buffett has signaled his own pivot toward Japan, stating earlier this year that dollar-denominated investments were looking less attractive. He said his company will increase investments in five major Japanese trading houses -- Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo -- as the yen provides a more stable currency.

Crypto ATMs Rebound Toward Pre-Crash Levels

The global cryptocurrency kiosk network expanded by 290 machines in February, pushing the worldwide total to nearly 40,000 units, according to data from Coin ATM Radar. The figure marks a return to 2021-era installation levels after the number of installations had dipped significantly following the crypto crash of 2022. The rebound signals renewed retail interest in physical access points for buying and selling digital assets.

Regulators worldwide have raised concerns over crypto ATMs and the possibility of their use in money laundering as well as scams. In a notable compliance development this month, Bitcoin Depot, the largest Bitcoin ATM operator in the United States, began phasing in user identification requirements at its terminals nationwide. The move came in response to mounting pressure from both regulators and lawmakers seeking stronger know-your-customer safeguards at point-of-sale crypto machines.