Cryptocurrency

Definition of Cryptocurrency in the Income Tax Act

Definition of Crypto Assets and Exclusion from Inventory The Japanese Income Tax Act contains specific provisions related to cryptocurrencies. Since these provisions specifically target cryptocurrencies, the definition of the term “cryptocurrencies” is critical to determining when these rules apply. In this context, Article 2, Paragraph 1, Item 16 of the Income Tax Act, which defines inventory, stipulates the following: For income tax purpose, inventories refer to goods, products, semi-finished products, work in progress, raw...