According to the National Tax Agency (NTA) of Japan 331 investors recorded more than $1 million dollars profit just by trading cryptocurrencies. Japan was one of the most active nations in the crypto market in the last years, and this is shown with the data provided by the NTA.
New Crypto Millionaires
At the end of 2017, the NTA announced that over 22 million Japanese citizens declared taxes to the government. Allowing the country to earn $375 million dollars (41 billion yen). The amount of taxes compared to the same period in 2016 has also increased due to the better economic situation, and part because of virtual currencies.
The GDP of Japan has grown 0.3% more just because the increased amount of cryptocurrency trading activity in the country. And those 331 investors that registered more than $1 million dollars profit have been helping to make that happen.
According to a research conducted by Nomura’s bank, Bitcoin could have increased the consumption in the Asian country. Something that is very positive for a stagnant economy since more than 20 years.
Yoshuyuki Suimon, leader of the team that conducted the investigation, commented:
“When some assets increase their value, it also means a higher spending from the consumer. This is known as wealth effect. We measured the wealth effect of unrealized gains in Bitcoin trading by japanese investors since the beginning of the fiscal year 2017, and we estimate a potential boost in consumer spending between 23.2 billion and 96 billion yen.”
Additionally, 549 individuals were able to record a non-working profit of $1 million dollars, which is mostly generated by investments into stocks, or other assets. The surprising fact is that 331 individuals were crypto investors.
In the past, the Japanese government announced that it was going to tax up to 55 percent on non-operational profit generated by investments on returns larger than 40 million yen. But there hasn’t been any clarification from the government, reducing the confidence of investors in the market.
The government remains optimistic about the number of voluntary tax payers in the cryptocurrency market. Something that in other countries is not happening. South Korea, another important participant in the crypto economy worldwide may follow the steps of Japan and help investors declare their crypto earnings to the government.