Intelligence Unit to Be Established: Created a Crypto Coin? Time to Pay Taxes

Creating a new crypto coin is no longer a task reserved for programmers or giant companies. Today, platforms exist that allow for the issuance of a token in a relatively short time, after which one can utilize artificial intelligence tools or external developers to set up a website, establish branding, and market the project. The result is that new coins are created daily; some are serious projects with clear business goals, while others are built primarily to attract attention and investors.

However, the point of interest for authorities comes precisely after a coin succeeds: when the creator sells their holdings, receives income, or converts the coin into fiat currency. From the very first operation with a new coin, in most countries, this constitutes a financial event with tax implications. Simply put, the fact that a transaction takes place on the blockchain rather than in a bank does not exempt the individual behind it from tax liability.

How can one distinguish between legitimate activity and fraud? In one scenario, a creator develops a project, markets it, sells a portion of the coins, and generates profit. In such a case, depending on the circumstances and applicable law, reporting and tax obligations arise.

In another scenario, a 'Rug Pull' occurs—a situation where project creators withdraw liquidity or sell a large amount of coins after investors have entered the market, leaving them with an asset whose value plummets. This is a phenomenon that may be considered a criminal offense, depending on the execution, and it remains subject to taxation in many jurisdictions. The advantage of blockchain for authorities is that every action leaves a digital record: it is possible to track the movement of coins between addresses, identify patterns, and attempt to link digital activity to individuals or businesses in the real world. Thus, the blockchain provides authorities with a significant investigative tool.

South Korea provides an interesting example. On August 21, 2026, it was reported that members of the country's parliament proposed expanding the powers of the Financial Intelligence Unit (FIU) to allow it to directly investigate suspected activities by unregistered crypto companies.

Under the proposal, citizens would be able to report suspected violations to the FIU, and the unit would be empowered to analyze information, file complaints, and even request the opening of criminal investigations. Currently, the FIU identifies suspicious operators but often relies on the police and other authorities for further handling.

According to published data, between August 2022 and August 2025, 25 cases involving unregistered digital asset service providers were transferred, yet investigations or preliminary checks in 23 of them were halted.

The South Korean move illustrates how deeply crypto has integrated into the economic system and how difficult it is for the state to treat it as a separate world. As more people create coins, manage communities, and generate income from them, authorities are required to find ways to identify such activity without waiting for the money to reach a bank.

In Israel, where the use of crypto continues to develop, the question is whether regulation and enforcement will manage to adapt to the pace of technological development. Ultimately, creating a coin may be simple, but once it generates real money, the story is no longer just technological. It becomes a business, an income, and sometimes a matter for tax authorities.

Note: Tax obligations vary depending on the country, the type of activity, and the circumstances of the transaction. Before carrying out commercial or financial activity in crypto, it is recommended to consult with a tax advisor or a qualified professional.