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- 1 The average value of undeclared income from crypto slipped by 19% in 2022: NTA Japan.
- 2 The agency conducted 615 investigations over the crypto holdings of citizens based on their crypto tax declaration for 2022.
- 3 USDC is the second most used stablecoin in the market, it has a market capitalization of $24.6 Billion.
As per the data of Japanese tax authorities, the average value of undeclared income from crypto slipped by 19% in 2022. The National Tax Agency of Japan published a detailed yearly crypto tax report of 13 pages.
The detailed report contains crucial data on crypto tax evasion practiced in the entire year. The agency conducted 615 investigations over the crypto holdings of citizens based on their crypto tax declaration for 2022.
In more than 540 cases the NTA found severe tax violations, a 35% surge since 2021 with 405 crypto evasion cases. However, a significant decline in undeclared crypto holdings slips from 36,590,000 Japanese Yen in 2021 to 30,770,00 Yen in 2022.
NTA, Financial Services Agency (FSA), and other Japanese agencies collectively confirmed that citizens would be spared from capital gains tax on unrealized gains in the crypto, which meant that the holders need not to pay around 35% taxes on the crypto assets held without trade operations during the financial year.
At the beginning of November 2023, Japan came up with 50 other nations to swiftly transpose the crypto-asset reporting framework.
USDC Issuers Alliance With SBI Holdings
The issuer of USDC stablecoin, Circle, announced a memorandum of understanding with SBI Holdings. The Web3 and blockchain investment enthusiast will help Circle to expand its use cases in Japan and will collectively promote the usage of stablecoins in the nation.
As per CoinMarketCap, USDC is the second most used stablecoin in the market and it has a market capitalization of $24.6 Billion. The deal also details that SBI will be providing banking services to Circle in the region.
In the official press release over the deal, it was stated that the SBI group will be adopting Circle’s Web3 solution including the programmable wallet. The SBI group has applied for the license of electronic payment instrument service, which will help in the distribution of USDC in the region.
Jeremy Allaire, the co-founder of Circle stated over the deal that “ Our partnership with SBI Holdings represents a shared vision for the future of digital currency, and is a significant milestone in Circle’s expansion plans in Japan and Asia Pacific.”
Adding more he said, “ We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.”
Japan, the world’s third-largest economy, is projected to slip to the fourth position this year, according to estimates from the International Monetary Fund.
The Japanese government’s move to establish stablecoin-related regulations indicates a proactive approach to investor protection, particularly in the aftermath of the implosion of TerraUSD.
The available market data states that USDC’s trading volume grew more than 89.88% in the past 24 hours, it is believed the pump in the trading volume is followed by SBI and Circle alliance in Japan.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
