New York lawmaker proposes 0.2% crypto tax on digital asset transactions

New York Assembly Member Phil Steck has introduced a bill that would impose a 0.2% crypto tax on all digital asset transactions, including cryptocurrency and NFT trades.

The proposed legislation, Assembly Bill A08966, was filed on August 13 and referred to the Ways and Means Committee. If passed, it would take effect on September 1, 2025, marking one of the most direct state-level attempts to tax the rapidly expanding digital asset sector.

According to the bill, revenue from the crypto tax would be dedicated to funding substance abuse prevention initiatives in New York’s schools. The measure defines digital assets broadly as any asset “issued, transferred, or both, using distributed ledger or blockchain technology,” covering everything from digital currencies to non-fungible tokens.

The legislation places responsibility for payment on those “making or effectuating the sale or transfer,” raising compliance questions for exchanges, traders, and DeFi protocols operating in the state.

Global Crypto Tax Landscape

The move comes as governments worldwide adopt diverging approaches to digital asset taxation.

• Indonesia has raised tax rates on foreign exchanges while keeping domestic levies lower, in a bid to drive users toward local platforms.
• Japan taxes crypto gains at rates up to 55%, sparking calls for a flat 20% capital gains tax to encourage investment.
• Thailand has taken the opposite route, granting a five-year exemption on crypto capital gains to attract investment.
• China, meanwhile, continues its blanket ban on all crypto activity, enforcing it with asset seizures and criminal penalties.

The European Union has already implemented its MiCA framework, requiring comprehensive licensing for crypto service providers, while Singapore and Hong Kong are positioning themselves as innovation hubs with strict but clear regulatory regimes.

U.S. Context

In the U.S., the Trump administration has reversed several Biden-era enforcement policies and rolled back DeFi broker rules, signaling a more crypto-friendly stance at the federal level. The New York bill, however, underscores how individual states may pursue independent taxation policies even as federal rules evolve.

Analysts say New York’s proposal could become a model for other states if successful. With crypto adoption climbing and transaction volumes growing, policymakers are increasingly eyeing the sector as a source of revenue.