Saturday, August 23, 2025

Question about Taxation around Crypto

First, I know crypto is a very high-risk investment (even close to gambling?), but I’d like to keep this post focused specifically on taxes.

A recent post about crypto reminded me to check my own situation.

Background:

  • I originally started with Line Bitmax to buy Bitcoin.
  • Later, I moved to Bitflyer.
  • If I remember correctly, I did a conversion: BTC → XRP (to transfer from Bitmax to Bitflyer) and then XRP → BTC again.
  • This was over five years ago. At the time, I (naively) thought this wouldn’t be taxable. I now know that crypto-to-crypto conversions are taxable events.
  • After switching exchanges, I just set up monthly purchases and left it alone. Since then, I haven’t sold or exchanged one crypto for another.
  • Currently have ETH and BTC.

My questions:
How should I fix this for my taxes so everything is correct?

  • Should I file something now, or just include it in my next 確定申告 (kakutei shinkoku)?
  • What kind of fines/penalties could I be looking at for such an old transaction?

To avoid mistakes going forward:

  • Bitflyer recently introduced staking for Ethereum and lending options for both ETH and BTC.
  • If I use staking/lending and receive a small % of crypto as rewards, how does this get taxed?
  • Is receiving the crypto itself already a taxable event, or only when it’s sold?

Any advice or experiences would be super helpful!
Thanks in advance


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