The Unreported Amount Of Cryptocurrency In Japan Has Been Reported To Decline.

In Japan, there has been a 19% decrease in the unreported amount of cryptocurrency in 2022. During this period, the number of tax evasion cases related to cryptocurrency assets increased by 35% in the same year.

In Japan, there was a 19% decrease in the unreported amount of cryptocurrency in 2022. The National Tax Agency (NTA) released its annual summary of tax investigations on November 24, sharing data related to investigations into cryptocurrency tax evasion.

NTA announced that it initiated 615 investigations related to crypto assets in 2022. This number was 444 in the previous year, 2021. The tax agency identified tax violations in 548 of these investigations. This represents a 35% increase from the 405 cryptocurrency tax evasion cases in 2021.

However, the value of unreported crypto assets decreased from 36,590,000 Japanese yen (approximately $245,000) in 2021 to 30,770,000 Japanese yen (approximately $206,000) in 2022.

In August, an announcement by NTA and the Financial Services Agency (FSA) confirmed that citizens would not be required to pay capital gains tax on unrealized gains arising from their crypto assets. This statement allowed investors to be exempt from approximately 35% tax for crypto assets they held without engaging in trading throughout the fiscal year.

Japan has rapidly adopted a new international standard, the Crypto Asset Reporting Regulation, allowing automatic information exchange among tax authorities, joining about 50 countries in doing so this month.