White House Proposes Tax Reporting Rule for Foreign Crypto Accounts | BitPinas Live Crypto Updates | July 31, 2025

July 31, 2025 Joseph Rees

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From the White House to Indonesia, from OKX to Hyperliquid, we’re tracking today’s most important crypto and AI stories as they unfold. This article will be updated throughout the day.

White House Proposes Tax Reporting Rule for Foreign Crypto Accounts

6:00 am: The Trump administration on Wednesday proposed new legislation requiring U.S. residents and companies to report foreign crypto accounts to the Internal Revenue Service, warning that failing to do so risks putting U.S.-based digital asset firms at a global disadvantage.

The recommendation was part of a sweeping 168-page policy report from the President’s Working Group on Digital Asset Markets, chaired by White House crypto and AI adviser David Sacks.
The group argued the move would help “alleviate concerns” over regulatory arbitrage and support the domestic crypto industry.

The report, unveiled at a White House ceremony attended by Treasury Secretary Scott Bessent and SEC Chair Paul Atkins, outlined broader reforms, including a proposed Crypto-Asset Reporting Framework (CARF) and guidance to shield decentralized finance (DeFi) from new reporting burdens.

It also urged banking regulators to streamline approvals for crypto banks and asked FinCEN to assess whether the Bank Secrecy Act should be updated for digital assets.
Calling Trump’s re-election “America’s hard fork,” the report framed the recommendations as the foundation of a “new American Golden Age” in crypto leadership.

Indonesia Hikes Crypto Taxes, Imposes Higher Rate on Overseas Trades

7:00 am: Indonesia will increase taxes on cryptocurrency transactions beginning August 1, with trades conducted through overseas platforms facing steeper rates than those on local exchanges, according to a new regulation issued by the finance ministry.

The move comes amid surging interest in digital assets, with crypto transaction volumes in the country hitting over 650 trillion rupiah ($39.7 billion) in 2024—triple the value from the previous year and surpassing the number of stock market investors.

Under the new rules, domestic crypto sellers will pay a 0.21% tax per transaction, up from 0.1%, while overseas trades will be taxed at 1%, five times the previous rate.

VAT for buyers has been scrapped, but the VAT rate on crypto mining will double to 2.2%.

Additionally, crypto mining income will no longer benefit from a 0.1% special tax rate and will be subject to regular income or corporate tax starting 2026.

Bitcoin Stalls Below $120K as Market Momentum Softens; Macro Risks Loom

9:00 am: Bitcoin remained rangebound on Wednesday, trading just below the $120,000 mark despite persistent institutional inflows and favorable regulatory tailwinds.

Support around $116,000 continues to hold, but analysts at QCP Asia noted that momentum is fading, with Ether also facing resistance near the $4,000 level.

The firm flagged signs of late-cycle behavior as price action failed to rally meaningfully on a series of bullish headlines, including U.S. crypto legislation and ETF developments.

Hyperliquid Clarified: No Outage, Only API Congestion as Users Experienced Problems Anew

10:00 am: At around 10:10 p.m. yesterday, PH time, Hyperliquid users reported that they cannot do close positions, execute trades, or withdraw funds through standard interfaces, where the platform is displaying “unexpected error sending order.”

The DEX, which was nearly the victim of a $12 million hack in March 2025, immediately confirmed that there was a problem, which was an API traffic and not a security exploit. The Hyperliquid’s front end was also frozen 10 minutes after the said concern was reported.

Consequently, Hyperliquid pledged to issue refunds to users who were adversely affected during the outage.