Update to Profit and Loss Calculation for Electronic Payment Method

Thank you for using cryptact.

We would like to inform you that we will be updating the profit and loss (P&L) calculation method for electronic payment instruments (denshi-kessai-shudan) as outlined below.

Update Details

For electronic payment method, when there is a difference between the face value (1JPY or 1USD) and the transaction price at the time of purchase or sale, the difference will be recognized as profit or loss at the time of the transaction.

Please note that while the total cumulative profit and loss amount will remain unchanged before and after this update, the timing of profit and loss recognition will differ. Please see the details below:

For JPY-denominated electronic payment method

For foreign currency-denominated electronic payment method 

With respect to foreign currency-denominated electronic payment method, as there are currently no clear official guidelines regarding the calculation of foreign exchange gains and losses, cryptact will calculate the average acquisition cost using the method selected by the customer (Periodic Average Cost or Average Cost), consistent with the treatment of crypto assets.

This update has been implemented in consultation with our tax advisor and with reference to the National Tax Agency (NTA) guidance titled:
“Tax Treatment and Calculation Methods for Crypto Assets, etc.” (Japanese only)
Section 3-2-1: Tax Treatment at the Time of Acquisition of Electronic Payment Instruments.

Applicable Assets

• JPYC
• USDC (applicable to transactions on or after March 4, 2025, when it was registered as an electronic payment method)

The scope is determined based on the list of electronic payment instruments published by the Japan Virtual and Crypto Assets Exchange Association (JVCEA). Any newly added eligible assets will be treated in the same manner going forward.

Applicable Customers

Customers who:

• Have transactions involving the applicable assets during the 2025 tax year, and
• Have their accounting currency set to Japanese Yen (JPY).

If you have already finalized your 2025 data, you will need to unfinalize it once in order for this update to be reflected.

Implementation Timing

This update is scheduled to be implemented in February 2026.

Impact on Customers

If you have transactions involving the applicable assets, your profit and loss amount for the 2025 tax year may increase or decrease.

However, during the 2025 tax year, the prices of the applicable assets did not significantly deviate from their face value. In addition, this update only changes the timing of profit and loss recognition, and does not change the total cumulative profit and loss amount. Therefore, we expect the overall impact to be minimal.

We apologize for announcing this update during the tax filing season and for any inconvenience this may cause.

If you have any questions, please contact us via the Support button on the Help page.

We appreciate your continued support of cryptact.