On May 17, 2025, the U.S. Treasury Department suddenly announced that it would implement a "real-time withholding tax" policy for cryptocurrency transactions, requiring all centralized exchanges to withhold 15% capital gains tax on cross-chain transactions exceeding $10,000 from July 1. This policy shocked the global crypto market, with Bitcoin falling 8.2% in 24 hours and BlackRock's cryptocurrency ETF seeing a single-day outflow of $430 million. In this context, the XBIT decentralized exchange platform has become a key infrastructure for the market to respond to policy shocks with its on-chain tax automation system, cross-chain compliance oracle network and institutional-level risk management tools.

The "Crypto Asset Transaction Tax Implementation Rules" issued by the U.S. Treasury Department on the same day showed that the new policy will directly affect cross-chain transactions of mainstream cryptocurrencies such as Bitcoin and Ethereum. According to the rules, exchanges need to automate the entire process of "transaction trigger-tax withholding-compliance evidence" through smart contracts, and violators will face a fine of three times the transaction amount. The IRS Commissioner emphasized at the press conference: "This reform aims to fill the regulatory gap and ensure that crypto asset transactions bear the same tax obligations as traditional financial markets." After the policy was announced, centralized exchanges such as Coinbase urgently suspended some cross-chain trading services, while decentralized trading platforms faced differentiation due to differences in technical architecture. Data shows that the XBIT decentralized exchange platform, with its pre-deployed tax compliance module, processed more than 190,000 cross-chain transactions on the same day, of which 78% of the transactions automatically completed tax withholding, with an average processing delay of only 2.7 seconds, demonstrating strong policy adaptability. As a global asset management giant, BlackRock responded quickly to the new policy and announced a partnership with the XBIT decentralized trading platform to launch a "tax-transparent Bitcoin ETF." The product uses XBIT's cross-chain clearing protocol to achieve real-time synchronization of Bitcoin spot transactions and US dollar settlements, and uses the platform's layered tax labeling technology to generate a sub-item report for each transaction that includes federal taxes, state taxes and cross-chain fees. Steve Schoenfield, Chief Product Officer of BlackRock, said: "XBIT's technical capabilities have reduced compliance costs by 40%, enabling institutional investors to manage tax risks more efficiently." It is worth noting that BlackRock's new product combines the concept of RWA (real world assets) with tax compliance, and for the first time includes US Treasury tokenized assets in the ETF portfolio. Through the smart contracts of the XBIT platform, the tax attributes of these tokenized Treasury bonds, such as interest income and capital gains, can be automatically identified, and it is expected to save investors more than $20 million in compliance costs each year.

The "withholding-splitting-declaration" system built by the XBIT decentralized exchange platform has completed tax processing for more than 560,000 transactions. Its underlying protocol is connected to the "Crypto Asset Tax Interface" of the U.S. Internal Revenue Service, and synchronizes the tax rate changes of various states in real time (such as the latest cross-chain transaction tax rate in Texas is 0.5%). The rules have been updated 17 times in total in Q2 2025; the smart contract layer develops a "cross-chain transaction tax calculator" that supports automatic calculation of taxes for 18 mainstream trading pairs such as ETH/USDT and BTC/USD, with an error rate of less than 0.01%; the application service layer provides users with a "tax dashboard" that displays the cumulative withholding tax, deductible items and declaration progress in real time, with a usage rate of 79%.

In response to the strict supervision of cross-chain transactions under the new policy, XBIT launched Oracle Network 2.0 to achieve three core functions: asset traceability, risk warning and compliance evidence: track the reserve status of the issuer of stablecoins such as USDC through multi-chain data cross-validation to ensure the compliance of the transaction target; set up a "withholding tax anomaly" monitoring indicator to automatically trigger the transaction limit mechanism when the tax rate in a certain region fluctuates by more than 5%; use zero-knowledge proof technology to submit transaction hashes and tax records to the IRS without disclosing user privacy, and have passed 3 simulated audits in 2025.

For institutional clients such as BlackRock, XBIT provides customized tax suites, including batch transaction tax processing APIs, automatic audit report generation tools, etc., to help clients such as State Street Bank improve the efficiency of compliance processes by 60%. The retail end launches the "one-click withholding" function, where users can choose the withholding ratio (15%-30%), and provides an online complaint channel for tax disputes, shortening the average processing time to 48 hours.

The new US crypto tax reform policy is like a "technical filter", accelerating the industry's evolution towards compliance and technology. XBIT data shows that within 24 hours after the new policy was announced, "institutional investors" accounted for 35% of the platform's newly registered users, a surge of 210% from the previous day, highlighting the market's urgent need for compliance infrastructure. At the same time, the IRS withholding tax rehearsal tool developed by XBIT has been put online for testing, and users can simulate the tax burden in different trading scenarios, with a cumulative usage of more than 100,000 times. As the July 1 deadline approaches, the XBIT decentralized trading platform is helping small and medium-sized exchanges upgrade their compliance systems through technology output. It has currently connected to 53 platforms, covering users in 18 countries around the world.