According to Japan’s tax authorities, the average value of undeclared income in crypto fell by 19% in 2022.

On Nov. 24, the Japanese National Tax Agency (NTA) released its yearly summary of tax investigations. The 13-page document also contains data on the probe into crypto tax evasion.

Related: Circle and SBI Holdings partner to boost USDC circulation in Japan

The NTA initiated 615 investigations into citizens’ crypto holdings based on their tax declarations for 2022, up from 444 in 2021. In 548 cases, the agency found tax violations, a 35% increase over 2021, which had 405 crypto tax evasion cases.

However, the average value of undeclared crypto holdings dropped from 36,590,000 Japanese yen (around $245,000) in 2021 to 30,770,000 yen ($206,000) in 2022.

In August, Japanese regulators, including the NTA and the Financial Services Agency (FSA), confirmed that citizens would be spared from a capital gains tax on unrealized gains in crypto. That means they will not have to pay around 35% of taxes on those crypto assets stored without trade operations during the fiscal year.

This month, Japan joined a list of almost 50 nations that pledged to “swiftly transpose” the Crypto-Asset Reporting Framework — a new international standard on the automatic exchange of information between tax authorities — into their domestic law systems.

Magazine: This is your brain on crypto. Substance abuse grows among crypto traders

According to Japan’s tax authorities, the average value of undeclared income in crypto fell by 19% in 2022.

On Nov. 24, the Japanese National Tax Agency (NTA) released its yearly summary of tax investigations. The 13-page document also contains data on the probe into crypto tax evasion.

Related: Circle and SBI Holdings partner to boost USDC circulation in Japan

The NTA initiated 615 investigations into citizens’ crypto holdings based on their tax declarations for 2022, up from 444 in 2021. In 548 cases, the agency found tax violations, a 35% increase over 2021, which had 405 crypto tax evasion cases.

However, the average value of undeclared crypto holdings dropped from 36,590,000 Japanese yen (around $245,000) in 2021 to 30,770,000 yen ($206,000) in 2022.

In August, Japanese regulators, including the NTA and the Financial Services Agency (FSA), confirmed that citizens would be spared from a capital gains tax on unrealized gains in crypto. That means they will not have to pay around 35% of taxes on those crypto assets stored without trade operations during the fiscal year.

This month, Japan joined a list of almost 50 nations that pledged to “swiftly transpose” the Crypto-Asset Reporting Framework — a new international standard on the automatic exchange of information between tax authorities — into their domestic law systems.

Magazine: This is your brain on crypto. Substance abuse grows among crypto traders