Japan has announced its plans to introduce a new reporting system for crypto-based transactions, in an attempt to prevent crypto tax evasion. The government is looking forward to implement a global crypto tax strategy for this.
The new system will enable the National Tax Agency (NTA) to gather data from transaction intermediaries, which include cryptocurrency exchanges. In other words, the NTA will have the authority to access information about customers who fall under tax evasion. According to sources, people who earn more than 10 million yen ($88,700) through crypto transactions will be accountable for crypto tax.
Currently, crypto exchanges possess the legal authority to refuse to hand over information. However, on implementing the new reporting system, the scenario will change. The government will have the power to ask for such information.