Guidance on the Crypto-Asset Reporting Framework (CARF) and the Act on Special Provisions for Tax Treaties

About the Crypto-Asset Reporting Framework (CARF)

The Crypto-Asset Reporting Framework (CARF) is a system developed by the Organisation for Economic Co-operation and Development (OECD) that provides for the automatic exchange of crypto asset account information to prevent international tax evasion using accounts held at virtual asset service providers (VASPs) in other countries.

In Japan, the National Tax Agency has implemented CARF by amending the "Act on Special Provisions of the Income Tax Act, the Corporation Tax Act, and the Local Tax Act Incidental to Enforcement of Tax Treaties" (Act on Special Provisions for Tax Treaties).


Effective January 1, 2026, all LINE BITMAX users, including those opening new accounts, will be required to declare their country of tax residence and other details in accordance with the Act on Special Provisions for Tax Treaties.

If your country of tax residence is outside Japan and that country is a jurisdiction subject to reporting, we are legally obligated to report your transaction information and other details to the National Tax Agency once a year.


As economic transactions become increasingly global, VASPs are required to ensure tax compliance to combat international tax evasion and tax avoidance.


We apologize for any inconvenience this may cause, but ask for your understanding and cooperation.

For more details about CARF, see this National Tax Agency page. (Only available in Japanese.)

When and how we ask you to declare your country of tax residence and other details

If you opened a new LINE BITMAX account from January 1, 2026:
Respond to the question "Is Japan your only country of tax residence?" when opening a new account.


If you already had a LINE BITMAX account as of December 31, 2025:
Respond to the question, "Is Japan your only country of tax residence?" on the "Manage registered information" screen by December 31, 2026. If you do not respond by the deadline, your LINE BITMAX account may be restricted.


If your declared country of tax residence or other details change:
Update your response to the question, "Is Japan your only country of tax residence?" on the "Manage registered information" screen within three months of changing your country of tax residence or other relevant details. Afterwards, you will be asked to provide additional information regarding your country of tax residence in accordance with applicable laws and regulations. If you do not provide accurate information within three months, your LINE BITMAX account may be restricted.


Note:You cannot use the LINE BITMAX service if your country of tax residence is outside Japan.If your country of tax residence changes or you acquire an additional country of tax residence, for example by moving overseas, first update your information as described above and then complete the subsequent procedures, including deleting your LINE BITMAX account.

For more information about the procedures, please see this page.


Review of registered information and consent to treatment of your information:

  • Before filling in the country of tax residence field, make sure that your registered information (e.g. your name, address) is up to date.
  • When you declare or update the country of tax residence field, we will treat the information you entered, together with the registered information we hold (name, address, date of birth), as if you had made a submission under the Act on Special Provisions for Tax Treaties.
  • By declaring or updating the country of tax residence field, you will be deemed to have agreed to the above treatment of your information.

Regarding your country of tax residence

  • The country of tax residence is the country where a person, as a tax resident, is required to pay taxes equivalent to an income tax.
  • If you have an address in Japan or have been residing in Japan for a year or longer, Japan will be considered your country of tax residence.
  • You are considered a tax resident of another country if you are taxed the equivalent of an income tax under that country's laws and regulations for reasons such as having an address there, living there for a significant period of time, or being a citizen of that country.
  • It's possible to be a tax resident of more than one country, as each country has its own laws and regulations for determining tax residence.
  • You are responsible for determining your own country of tax residence based on the applicable laws and regulations. We are unable to provide specific advice on matters related to tax law. If you are unsure of your country of tax residence, please consult a qualified professional, such as a tax counselor or accountant.

Consequences of not declaring your country of tax residence accurately

  • From January 1, 2026, we will not accept applications to open a new LINE BITMAX account from individuals who do not declare their country of tax residence and other relevant details.
  • If you already have a LINE BITMAX account and do not declare your country of tax residence and other relevant details by December 31, 2026, your use of your LINE BITMAX account may be restricted.
  • If you do not provide accurate information regarding your country of tax residence and other relevant details within three months after your country of tax residence changes, your use of your LINE BITMAX account may be restricted.
  • If you falsely declare your country of tax residence or other information, you may be subject to imprisonment for up to six months or a fine of up to JPY 500,000, in accordance with Article 13, Paragraph 4 of the Act on Special Provisions for Tax Treaties. We ask for your cooperation in providing accurate information.

 

For details, see the National Tax Agency website.

Important

In accordance with the Act on Special Provisions for Tax Treaties, any personal information we collect from you will be used only to the extent necessary to achieve the purposes of the Act.