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ARTICLE · 02 JUNE 2026

The Impacts Of Cryptocurrency On Cross-border Transactions

GGI | Global Alliance
GGI | Global Alliance
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As cryptocurrency transitions from niche to mainstream with a $4 trillion market cap, cross-border crypto transactions are creating unprecedented tax complexity through inconsistent country-by-country treatment. From income type mismatches and sourcing challenges to valuation volatility and transfer pricing complications, the global tax framework struggles to address digital assets that existing tax treaties were never designed to handle.

United StatesTechnology
James Duncan (Navolio & Tallman LLP)
James Duncan (Navolio & Tallman LLP)
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In 2025, crypto market capitalisation reached USD 4 trillion, and in 2026 daily transaction volume ranges from USD 50 to USD 100 billion. Crypto is no longer a niche market but has become mainstream. 

The broad adoption of crypto is reshaping cross-border transactions globally. From a tax perspective, these transactions create inconsistencies and complexity. At the root of these inconsistencies are the varying country-by-country treatments of crypto assets and transactions.

Using the United States as an example, when crypto is used for cross-border payments, a taxable gain or loss is recognised under a property-based regime generally governed by Internal Revenue Code (IRC) Sec. 1001. Accordingly, the recipient recognises income based on the fair market value of the crypto at the time of payment. If the same recipient is located in a jurisdiction treating crypto as currency, the result is a mismatch in income type preventing the utilisation of tax credits and giving rise to double

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