Japanese Authorities to Crack Down on Crypto Income Tax Dodging

Asia Japan Taxes

Japanese cryptocurrency exchanges may face legal action if they do not accurately report profits from cryptocurrency trading activities.

Japanese authorities intend to take a closer look at cryptocurrency transactions that may be facilitating tax avoidance, a report by The Asahi Shimbun has revealed.

In recent years, according to the publication, approximately 50 traders and 30 firms in Japan have not declared cryptocurrency income worth over 10 billion yen ($92.3 million).

The report noted that some crypto exchanges had received requests for last year’s client transaction data from an investigative team at the Tokyo Regional Taxation Bureau, adding that companies failing to declare their cryptocurrency income to tax authorities may face legal action.

Cryptocurrency income is taxed at up to 55% – 35% more than income from trading stocks.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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