Tokenized Stocks Highlight Crypto Tax Reporting Gaps

The rise of tokenized stocks in Europe has exposed significant deficiencies in global crypto tax reporting. Platforms like Robinhood and Gemini now offer blockchain-based derivatives mirroring traditional equities, enabling 24/7 trading of assets like Apple and Tesla. While this innovation boosts market accessibility, it simultaneously pressures regulators to address the widening gap between crypto and traditional brokerage reporting standards.

Australia exemplifies this disparity. The ASX provides tax authorities with structured transaction data for automatic pre-filled returns, while crypto reporting remains rudimentary—limited to basic notifications about taxable events. Galaxy Digital predicts these synthetic assets may drain liquidity from conventional exchanges, accelerating demands for regulatory alignment.