Ministry of Economy and Finance: Tokenized stocks taxable, self-reporting required

The Ministry of Economy and Finance said, “Tokenized stocks are, in principle, subject to taxation, so taxpayers must self-report,” while adding, “For unreported transactions, taxation is only possible once transaction information has been secured, so we are preparing the relevant framework.”

To that end, the tax authorities are participating in the establishment of the Crypto-Asset Reporting Framework (CARF) being advanced by the Organisation for Economic Co-operation and Development (OECD). CARF is a system under which signatory countries regularly exchange crypto-asset transaction information on an annual basis. As it is slated to go into full implementation starting next year, meaningful taxation of tokenized stocks within this year is expected to be difficult.

You have to self-report <- the scariest sentence