Announcing the "defitact" Blockchain Transaction Ranking TOP3 

pafin Inc. (Co-chairman: Amin Azmoudeh and Gaku Saito, hereinafter “pafin”), the provider of cryptact, the automatic profit and loss calculation service for crypto-assets (cryptocurrency), and defitact – labeled “Your Web3 Sidekick”. We present a newsletter summarizing key industry information in light of the major entries into the burgeoning Web3 sector.

"defitact" – Your Web3 Sidekick adopted in 30 countries just 3 months after its release

"defitact" allows users to instantly aggregate blockchain-based transactions and assets such as DeFi and NFTs by inputting their wallet address, providing a visual representation of their portfolio. Users can monitor the real-time transaction status across multiple decentralized applications, as well as the balance and market cap of assets in their wallets. It serves as a Web3 "ledger" that centralizes this information. Launched in June 2023, it is now used in 30 countries within just 3 months.

URL: https://www.defitact.com/en

 Announcing the "defitact" Blockchain Transaction Ranking TOP3

To mark its 3-month anniversary, pafin Inc. will release the "Blockchain Transaction Ranking TOP3" based on usage data from "defitact". This ranking has been derived from user wallet activities between June and July 2023 using "defitact". 

*Calculated from the wallets of defitact users

 Web3 Industry News

With major players entering the scene and elevating expectations for the Web3 industry, the JCBA, in collaboration with JVCEA, has submitted a "Tax Revision Request" to the Financial Services Agency. 

Mercari's Bitcoin trading service surpassed 500,000 users just over 3 months after its launch. Square Enix revealed in their earnings conference that the cumulative number of NFTs issued for "Asset Million Arthur" has reached 140,000. This amplifies expectations for businesses providing new customer experiences leveraging cryptocurrency and Web3.

Supporting this momentum, the LDP Digital Society Promotion Department's Web3 project team compiled comprehensive recommendations for promoting the Web3 industry in April 2023. They formally proposed these to the government in June 2023 as "Digital Japan 2023". In response to the ruling party's proposal, the government explicitly stated in its "New Capitalism Grand Design and Execution Plan 2023 Revision" that it would consider measures to promote Web3, including cryptocurrency tax revisions. Although Japan made tax revisions for company-issued cryptocurrencies in 2023, remaining tax issues serve as barriers for entrepreneurs and users, resulting in delayed adoption and talent outflow abroad.

To address these issues, JCBA (Japan Cryptocurrency Business Association), where pafin's CEO Saito serves as a committee chairman, collaborated with JVCEA (Japan Cryptocurrency Trading Industry Association) to compile and submit a "Tax Revision Request" to the Financial Services Agency at the end of July.

This year's "Tax Revision Request" essentially continues the annual request for separate 20% tax reporting. Additionally, it demands that third-party issued and held cryptocurrencies not be subject to end-of-period market value assessments for corporate taxes and includes further requests concerning cryptocurrency-to-cryptocurrency exchanges.

Pafin's Representative Speaks at WebX Hosted by CoinPost – Emphasizes the "Social Momentum" Essential for Cryptocurrency Tax Reforms (Excerpts from the Session)

At the WebX conference hosted by CoinPost Co., Ltd., our representative Saito took the stage alongside Mr. Keigo Takegahara, Executive Managing Director (CFO and CRO) of Coincheck, Inc. and Vice Chairman of the Tax Study Group at JCBA.

In the session, they emphasized that the 2022 revision, which excludes corporate-held self-issued tokens from end-of-year taxation, is just the “beginning” of requests concerning cryptocurrency tax regulations. The primary focus this year includes facilitating long-term holdings of tokens issued by other companies and exemptions from end-of-year corporate taxes on such tokens. Additionally, Saito highlighted that the significant topic heading into fiscal 2023 is the reform of personal income taxation, specifically, the shift to a "separate declaration taxation" for cryptocurrency.

In Japan, profits from selling cryptocurrencies by individuals are currently taxed as “miscellaneous income” at rates up to 55% (including municipal taxes for incomes over 40 million yen). JCBA, led by Saito, is pushing for reforms to address the comparative disadvantages in Japan's crypto taxation compared to other countries. One aspect of this includes adjusting the inability to carry over losses from the previous year. Dialogues with relevant government agencies are ongoing through "Tax Reform Request Letters" to resolve these taxation issues.

During the session, Saito conveyed that negotiations with authorities are tough, emphasizing the broad "social momentum" needed for reforms to be accepted. This encompasses not only concrete data like crypto use-cases, number of accounts, and user counts, but also the development of new economic systems leveraging "Service Finance" like IEOs (Initial Exchange Offerings). The discussion also hinted at potential non-taxation of exchanges between cryptocurrencies. While these initiatives aim to mitigate negative tax implications and promote proper handling, achieving these goals won't be immediate.

<Article Report>

Will Japan's Cryptocurrency Tax System Really Change? | WebX Report & Interview

URL: https://coinpost.jp/?p=473893

 Recent News from Pafin Inc.

In July 2023, a memorandum of understanding was signed with NTT Docomo and NTT Digital to promote the "popularization and social implementation of Web3." This collaboration aims for the integration of Web3 blockchain wallet being developed by NTT Digital and Pafin's services.

Furthermore, we're in discussions about a partnership in the Web3-related business, following an investment by Daiwa Securities Group Headquarters.

Contact for public relations and media/press coverage-related inquiries
pr@pafin.com