Today in crypto, Kraken calls for two key changes to US tax law affecting crypto users to eliminate millions of unnecessary forms,the UK Financial Conduct Authority has raided eight locations suspected of illegal peer-to-peer crypto trading, and Justin Sun has filed a lawsuit against World Liberty Financial, alleging that the company froze his tokens and threatened to burn them without justification.
Kraken calls for de minimis exemption on crypto taxes after 2025 reports
Cryptocurrency exchange Kraken called for a change in US tax policy after reporting millions of cases of transactions “worth less than $1” as part of its reporting requirements for 2025.
In a Wednesday blog post, Kraken said it issued more than 56 million tax forms — 1099-DAs — to the US Internal Revenue Service (IRS) in 2025 as now required by law. However, the exchange said that about 18.5 million of those forms were for transactions under $1, with about 28 million for $10 or less and 75% under $50.
In an effort to “eliminate millions of unnecessary forms,” the exchange called for a de minimis exemption for taxes to exclude “small, routine digital asset payments from capital gains reporting.” It similarly advocated for an end to “phantom” income derived from staking cryptocurrencies, requiring holders to “owe taxes on value they have not realized” by not selling their staking rewards.
“This is not about helping crypto companies,” said Kraken about its recommendations. “It is about 55 million Americans, spanning every state, age bracket and industry, who are navigating a tax system designed before digital assets existed. Congress should act to make taxpayers’ lives easier.”
UK cracks down on illegal P2P crypto trading in nationwide raids
The UK Financial Conduct Authority (FCA) has raided multiple sites suspected of running illegal peer-to-peer (P2P) crypto trading operations.
The financial services and markets watchdog said Wednesday that it worked alongside HM Revenue & Customs and the South West Regional Organised Crime Unit to inspect eight locations linked to illegal crypto trading. Officials issued cease-and-desist notices on site, ordering operators to halt activity immediately, while gathering evidence tied to ongoing criminal investigations.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,” Steve Smart, the FCA’s executive director of enforcement and market oversight, said.
P2P crypto trading allows individuals to buy and sell digital assets directly, bypassing centralized exchanges. In the UK, such activity requires registration under anti-money laundering rules. The FCA said no peer-to-peer crypto traders or platforms are currently registered with the regulator.
The raids mark the FCA’s first operation of this kind focused on P2P crypto trading, but follow a series of enforcement steps against the sector. Previous actions include prosecutions tied to illegal crypto ATM networks and arrests linked to unlicensed exchanges.
Justin Sun sues World Liberty Financial over token lockup
Tron founder Justin Sun said he has filed a lawsuit against Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.”
In a post to social media on Wednesday, Sun said the suit, filed in a California federal court, was meant to protect his rights as a token holder.
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.
Sun previously threatened legal action earlier this month over lengthy lockup periods for WLFI’s governance token and accused WLFI’s recent governance proposal of lacking transparency because 76% of the voting tokens came from 10 wallets.
