The relationship between U-cards and taxation may not be as simple as imagined. My friend may be asking about the Japanese tax issue that I mentioned earlier. It is true that using a U-card can to some extent avoid some tax issues, but this is not the most fundamental and direct. Firstly, we need to divide the issue of Japanese taxation into two parts. If you are born Japanese, only have one Japanese passport, and are also a Japanese tax citizen, then most of the exchanges you can use are compliant Japanese exchanges that are subject to taxation. For example, if you buy a BTC for $50000 and sell it for $100000, even if it sells as USDT, you still need to pay taxes. This has nothing to do with whether you hold USDT or Japanese yen. When selling, you need to consider taxes, which are not paid immediately, but are reported annually. Assuming you have no job and no deductions, you will need to pay approximately 23% tax on this transaction. (Actually, the upper limit of the tax is 55%) So even if you use a U-card for payment, it won't have any impact on the taxes generated by your main transactions. But if you, as a pure Japanese, exchange Japanese yen for USDT, transfer USDT to DEX, and buy a Bitcoin for $50000 and sell it for $100000, your account will increase from $50000 to $100000. So, essentially speaking, almost no one knows about this matter except for you. Of course, as a law-abiding citizen, it is our responsibility to pay taxes, but it is true that no one else knows about this part of the funds. However, if you transfer the $100000 to the bank, whether it is in US dollars or Japanese yen, it may trigger the bank's attention. If it is found that you have evaded taxes, then the problem is quite serious. At this point, if you have a U-card and transfer the $50000 in your wallet to the U-card for consumption, theoretically speaking, what you are avoiding is not the 23% tax, because the tax is already generated at the moment you sell Bitcoin, it's just whether you have filed taxes or not. The U-card solves not the problem of taxes, but the path for your deposit and withdrawal. The essence of U-cards does not involve overly complex tax issues, but rather solves the problem of how to use a portion of funds for consumption without going through KYC and AML. Now let's move on to the second part. Assuming you are not a native Japanese and have a passport outside of Japan, if you have a Chinese passport and registered with a non compliant exchange in Japan, even if you are still living in Japan, have obtained identity, or become a Japanese tax citizen, you can still use this account to trade, although this is not legal. PS: At least the current exchange system is working, we don't know about the future. So, if all your transactions are profitable, the Japanese system will not know, but the premise is that you cannot transfer the profits to Japanese banks. Small amounts are acceptable, but if you hear about large amounts, you will still have trouble. And the trouble is not small. So a U-card can also solve some of the problems, after all, living in Japan requires spending money on clothing, food, housing, and transportation. Of course, there are also some non compliant OTC in Japan that can help you convert USDT into Japanese yen, but entering the bank is still quite troublesome, so most of them are in cash. Overall, although the example given is Japan, the operation is similar for most countries or regions that need to pay taxes and fees. This is also why DEX and Perp Dex have a market. Indeed, many regions have high taxes, and some people may want to find some compromise routes. There is no essential connection between U-cards and taxes. In any region where cryptocurrency taxation is required and you are a local tax resident, you already have the obligation to pay taxes at the moment of transaction. The emergence of U-cards only solves the problem of funds that you can use without complex KYC and AML. @bitget VIP， Lower rates and more generous benefits