Crypto Today: Dutch Gains Tax, SEC Drops Gemini, Waltio Breach
Netherlands advances plan to tax unrealized gains on stocks, bonds and crypto
The Netherlands is moving forward with a proposal to levy taxes on unrealized capital gains across assets such as stocks, bonds and cryptocurrencies, prompting concerns about potential capital outflows.
A majority in the Dutch parliament appears set to support reforms to the Box 3 asset tax system that would require investors to pay annual tax on both realized and unrealized returns, even when assets are not sold, NL Times reported on Tuesday.
The initiative follows court rulings that invalidated the prior framework for relying on assumed rather than actual returns. The Tweede Kamer (House of Representatives) revisited the plan this week, submitting more than 130 questions to caretaker State Secretary for Taxation Eugène Heijnen.
Despite acknowledging shortcomings in the proposal, most lawmakers indicated they would back it, citing an estimated 2.3 billion euros ($2.7 billion) in annual revenue losses if implementation is postponed further.
Source: Michaël van de Poppe
SEC drops civil action against Gemini with prejudice
The U.S. Securities and Exchange Commission’s civil case against Gemini Trust Company and Genesis Global Capital over the Earn program’s alleged unregistered securities offering has been dismissed with prejudice.
Court filings show the parties filed a joint stipulation to dismiss the matter on Friday in the U.S. District Court for the Southern District of New York, effectively ending the SEC’s claim related to Gemini’s crypto lending program with Genesis. A federal judge must still approve the stipulation.
The dismissal follows the SEC’s decision to pause the case in April 2024, when then-acting chairman Mark Uyeda was leading the agency. The SEC said it agreed to dismissal based on the 100% in-kind return of Gemini Earn customers’ crypto assets through the Genesis bankruptcy in mid-2024 and Gemini’s agreement to contribute up to $40 million to facilitate the full return of those assets.
The agency also noted that Genesis previously resolved the matter with the SEC by agreeing to pay a $21 million penalty.
Extract of the SEC’s joint stipulation to dismiss the case involving Gemini and Genesis. Source: CourtListener
The SEC filed the case against Gemini and Genesis in January 2023, during the Biden administration, amid a broader regulatory enforcement push targeting the crypto sector.
French authorities probe data breach at crypto tax platform Waltio
French authorities have opened a preliminary investigation into a security incident at cryptocurrency tax platform Waltio that may have exposed users’ personal information.
According to a Thursday notice from French cybersecurity authorities, the Paris Public Prosecutor’s Office and the National Cyber Unit are examining the scope of the stolen data and the identities of affected Waltio users. The notice cautioned that impacted individuals could be targeted by attempts to move their digital assets under the pretense of legitimate security actions.
Le Parisien reported on Friday that a hacker group known as the Shiny Hunters sent a ransom demand to Waltio following the breach. The attackers allegedly obtained personal data for about 50,000 Waltio users, most of whom are located in France.
Authorities warned that criminals have previously targeted crypto users globally after obtaining names, addresses and information on holdings. The notice said affected individuals in France could face risks including “kidnappings and unlawful detentions,” or threats to relatives, aimed at extorting digital assets. Such incidents are often referred to as “wrench attacks,” in which assailants coerce victims—sometimes through violence—into transferring funds.
Some users in France have already experienced these types of attacks, with similar cases reported in other countries.
Thursday notice on the Waltio data breach. Source: Paris Public Prosecutor’s Office
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