In 2022, Japan's average value of unregistered cryptocurrency went down by 19%.
In 2022, the amount of cases involving tax evasion on the grounds of crypto possession increased by 35%. Thus, according to Japan's duty experts, the average worth of undeclared crypto fell by 19% in 2022.
On Nov 24, the Japanese National Tax Agency (NTA) made its annual list of examinations public. The 13-page report also details information on the crypto tax avoidance test.
The NTA began 615 examinations of residents' crypto property in light of their assessment announcements for 2022, up from 444 in every previous year. The organization discovered tax violations in 548 cases, constituting a 35% spike compared to 2021, which had 405 crypto tax avoidance cases.
Nonetheless, the average value of unregistered crypto assets fell from 36,590,000 Japanese yen (about $245,000) in 2021 to 30,770,000 yen ($206,000) in 2022.
Japanese regulators, notably the NTA and the Financial Services Agency (FSA), stated in Aug that at this time, Japanese holders are freed from a capital gains tax on newly acquired cryptos. That means they won't have to give up roughly 35% of expenses on those crypto assets held without exchange activity during the fiscal year.
In Nov 2023, Japan joined a group of almost 50 nations that pledged to “swiftly transpose” the Crypto-Resource Revealing Structure, another global standard on the automated exchange of data between charge specialists, into their domestic regulatory frameworks.