Back
Japan Tax Agency Uncovers $1.56 Billion Undeclared Crypto Income in FY2024

Japan Tax Agency Uncovers $1.56 Billion Undeclared Crypto Income in FY2024

Japan’s National Tax Agency intensified crypto tax enforcement, recovering ¥4.6 billion through 613 investigations and stressing accurate reporting of DeFi, airdrops, mining, and staking activities.

Summary

Japan's National Tax Agency reported 613 on-site investigations into individual cryptocurrency transactions between July 2024 and June 2025, recovering about ¥4.6 billion, a 31.4% increase year-on-year. Enforcement focused on proper profit/loss calculation, complete recordkeeping, and accurate reporting of DeFi operations, airdrops, mining, and staking income. This reflects continued emphasis on crypto tax compliance following FY2024’s uncovering of $1.56 billion in undeclared income and $46 million in additional tax assessments.

Terms & Concepts
  • National Tax Agency (NTA): Japan's governmental body responsible for tax administration, including investigations into undeclared income from cryptocurrency transactions.
  • Decentralized Finance (DeFi): A blockchain-based financial system enabling transactions without intermediaries, covering lending, staking, and other crypto services.
  • Airdrop: The distribution of cryptocurrency tokens, often free, to multiple wallet addresses to promote adoption or reward users.