This summary text is fully AI-generated and may therefore contain errors or be incomplete.
According to recent data from Japan’s tax authorities, the number of tax violations involving cryptocurrencies has increased in the country. However, there has been a decrease in the average value of undeclared income in crypto. The Japanese National Tax Agency (NTA) conducted 615 investigations into citizens’ crypto holdings based on their tax declarations for 2022. Out of these investigations, 548 cases were found to have tax violations, which is a 35% increase compared to the previous year. It is worth noting that the number of investigations also rose from the previous year. On the other hand, the average value of undeclared crypto holdings dropped from 3,659 Japanese yen (around $245,000) in 2021 to 3,077 yen ($206,000) in 2022. In the summer of 2023, Japanese regulators announced that citizens would be exempt from paying capital gains tax on unrealized gains in crypto, providing relief for those who hold crypto assets without engaging in trade operations during the fiscal year. Japan has also joined a group of nearly 50 nations that have committed to implementing the Crypto-Asset Reporting Framework (CARF), an international standard for the automatic exchange of information between tax authorities.