As stablecoins become increasingly embedded in the day-to-day operations of businesses - from payroll and investment to cross-border payments - the question many are asking is deceptively simple: “If it’s pegged to fiat, is it even taxable?”
The answer is yes and in 2025, the rules have only become more nuanced.
In this guide, Myna’s crypto accounting specialists unpack what’s changed, what matters most, and how you can prepare to stay fully compliant in a rapidly evolving regulatory environment.
Swapping Crypto for Stablecoins Still Triggers Capital Gains
One of the most common misconceptions we hear is that moving cryptoassets into stablecoins is tax-neutral. It isn’t. In the UK, and in many other jurisdictions, swapping ETH, BTC, or other cryptocurrencies into USDT, USDC or similar stablecoins is considered a disposal. That means you’re potentially realising a capital gain, or a loss, at the time of the transaction.
These events must be reported accurately for Capital Gains Tax purposes, using the market value at the time of disposal. This is especially important if you're actively rebalancing portfolios or using stablecoins as a hedge during market volatility.
Detailed records should include the transaction date, the asset value at the time of the swap, and any associated fees.
Stablecoin Transactions in Business Are Taxable Events
Whether you’re paying suppliers, accepting payments, or processing salaries in stablecoins, those transactions carry the same tax and accounting implications as their fiat equivalents - only with added complexity.
You’ll need to consider real-time exchange rates, proper valuation of the stablecoins at the time of use, and whether the transaction is being treated as revenue, expense, or capital. Unlike fiat currencies, stablecoins may fluctuate slightly, and their tax treatment hinges on how they’re recorded and reported.
Failing to track stablecoin transactions correctly can lead to underreported income or misclassified expenses, which could flag issues during audits or reviews.
Yield, Lending, and Staking Rewards Are Taxable Income
Many crypto businesses earn yield on stablecoins through DeFi protocols or centralised platforms. These rewards, while sometimes modest, are still treated as income under HMRC guidance and they must be declared.
Understanding the tax implications begins with clarity on the type of reward, the platform or protocol that generated it, and the GBP value at the time of receipt. Even if rewards are automatically reinvested or compounded, they are often considered realised income and must be recorded accordingly.
This is a high-risk area in 2025, as HMRC has specifically highlighted DeFi activity as a focus for scrutiny. Proactive record-keeping and regular reporting are essential.
Cross-Border Operations Require Localised Tax Strategy
One of the more challenging aspects of stablecoin taxation is its jurisdictional variability. What may be treated as interest income in the UK could be classified differently in the U.S., the UAE, or elsewhere.
If your business operates internationally, or has users, investors, or contractors in multiple countries, you need to ensure your tax planning is aligned with local laws and reporting requirements. A UK-based entity paying a developer in stablecoins in another jurisdiction may trigger both domestic and foreign tax obligations.
The key is to structure operations with multi-jurisdictional clarity, ensuring all activities are documented and justifiable across tax regimes.
The Compliance Landscape Is Evolving Fast
In 2025, crypto regulation is no longer speculative, it’s established, with clearer expectations and increasing enforcement. For founders and finance leads, this is not the time to assume regulators will overlook grey areas. In fact, more businesses are being asked to provide wallet-level transaction histories, real-time exchange values, and integrated crypto accounting records than ever before.
Clear separation of personal and business wallets is a minimum standard. So is using modern accounting tools that integrate with blockchain activity. And above all, businesses should be conducting regular crypto tax reviews to ensure they’re prepared before any formal review is requested.
Why Simplicity of Use Doesn’t Equal Simplicity of Tax
Stablecoins may make business faster, more efficient, and more global, but that simplicity of use often hides a web of tax complexity. Treating stablecoins like fiat for accounting purposes can quickly lead to reporting errors, especially when it comes to cross-chain activity, DeFi use, or capital vs. income classifications.
In short, they look like cash, act like crypto, and are taxed as both, depending on the context.
If your company earns, pays, holds, or transacts in stablecoins, 2025 is the time to make sure your accounting and tax approach is fully aligned with the latest guidance.
Get Expert Help Navigating Stablecoin Tax in 2025
At Myna, we work exclusively with Web3 businesses, DAOs, and crypto-native founders to navigate complex tax issues with confidence. From stablecoin payroll and cross-border payments to DeFi income and wallet segregation, we help ensure your business stays compliant, audit-ready, and operationally efficient.
If you're using or planning to use stablecoins, now is the time to future-proof your strategy.
Contact us today to speak with our crypto accounting specialists.
