What is the Crypto-Asset Reporting Framework (CARF) for Non-Residents?
Due to the 2024 tax reform, from August 1, 2026 onwards, individuals (including the corporates) who conduct crypto-asset transactions with crypto-asset exchange service providers or who have such transactions as of December 31, 2025, will be required to submit a notification form to the crypto-asset exchange service providers indicating their country of residence (*1) and other details.
This is because, to address international tax evasion and tax avoidance using crypto-assets, a system will be implemented under the "Crypto-Asset Reporting Framework (CARF)" developed by the OECD. Under this framework, crypto-asset exchange service providers will report crypto-asset transaction information related to non-residents to tax authorities, and this information will be mutually exchanged among tax authorities of different countries.
Please note that if there are falsehoods or omissions in the declaration of the country of residence, penalties such as imprisonment for up to six months or fines of up to 500,000 yen may be imposed under the Act on Special Measures Concerning Tax Treaties (実特法). For more details, please refer to the National Tax Agency’s website or our FAQ.
We kindly ask for your understanding and cooperation regarding this matter.
*1 "Country of residence" means the country where you are liable to pay income tax or corporate tax. For example, a person residing in Japan with Japanese nationality who is only liable to pay taxes in Japan has "Japan" as their country of residence. A person residing in Japan with Australian nationality who is liable to pay taxes in both Japan and Australia has both "Japan" and "Australia" as their countries of residence.
What should I do if I am moving abroad (leaving Japan)?
Binance Japan services are provided to customers residing in Japan. Therefore, if you move abroad, you will need to choose one of the following options regarding your Binance Japan account, depending on your new country of residence:
(If Binance Global services are available in your new country) Change the country of residence on your Binance Japan account.
(If Binance Global services are not available in your new country) Your use of the Binance Japan account will be partially or fully restricted. Alternatively, you may choose to close your account yourself.
When your country of residence changes due to relocation, you are required to submit your country of residence (tax jurisdiction), foreign taxpayer identification number, and other relevant information within 90 days from the date of change, in accordance with the Act on Special Measures Concerning Tax Treaties (実特法). Please contact our support chat promptly once your relocation is confirmed.
Please note that if there are falsehoods or omissions in the declaration of the country of residence, penalties such as imprisonment for up to six months or fines of up to 500,000 yen may be imposed under the Act on Special Measures Concerning Tax Treaties.
For more details about the above procedures or about reopening your account if you become a resident of Japan again, please contact us via the support chat.