Funded crypto prop trading income is taxable in every major jurisdiction. The classification — whether it is self-employment income, capital gains, or something in between — depends on your country, your volume, and how the trading activity is structured. In the United States, income from funded trading is typically treated as ordinary income, with self-employment tax implications. Capital gains treatment is not available on short-term trading activity. In the UK, HMRC classifies most active trading income as either trading profits or capital gains depending on the frequency and intent of the activity. The boundary is not always clear. In Australia and Singapore, similar questions apply, with different thresholds and exemptions for each case. What is consistent across all of them: keeping detailed re...