The decision, announced on Wednesday, provides centralized exchanges and brokers more time to adapt to the regulations while offering temporary relief to digital asset investors concerned about potential tax increases.
This decline coincides with the delisting of USDT by several European Union-based exchanges and Coinbase. The decision was driven by compliance requirements under the EU’s Markets in Crypto-Assets (MiCA) regulations, which took full effect on December 30.
According to blockchain security firm CertiK, December saw $28.6 million in losses from exploits, hacks, and scams—less than half of November’s $63.8 million and significantly below October’s $115.8 million.
The regulations require brokers to disclose gross proceeds from cryptocurrency and other digital asset transactions, along with details about the taxpayers involved.
The ISA’s decision comes nearly a year after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs), sparking a surge in global interest in Bitcoin-based investments.
