pafin Inc.’s cryptact Adds Support for Automatic NFT Trading Calculations done via OpenSea, the World’s Largest NFT Marketplace

Automatic classification and support for 70% of NFT transactions done on OpenSea

We are pleased to announce cryptact’s integration with the world’s largest (*1) NFT marketplace, OpenSea. cryptact will now automatically classify and calculate 70% of all transactions (*2) done on the OpenSea marketplace. This will provide a seamless support system for NFT creators and purchasers covering trade management all the way to tax declaration.

(*1) Based on internet searches.    
(*2) Based on our database, transactions solely involving the purchase of NFTs using cryptocurrency account for 70% of all OpenSea transactions.   

[Background: The expanding world of NFT trades] 

One of the markets garnering significant attention globally is NFTs. In 2021, the global NFT transaction volume reached $17.69 billion, marking an approximate 215-fold increase from the previous year (*3). Even in Japan, where NFTs have caught attention, awareness of the technology amongst the populace is only 30.8%, and only 3.2% hold any NFTs as of August 2022 (*4). Additionally, some traders may not be aware that their NFT trades could be subject to taxation.

[Complexities in Tax Returns for NFTs] 

To file tax returns for income from NFT trades, one must calculate the profit and loss from these transactions. Due to issues like unavailability of transaction histories and data for such calculations, traders need to maintain their own transaction records. This requires detailed transaction data and understanding of which income category they fall under. The process from calculation to taxation is intricate and demands specialized knowledge. Moreover, with OpenSea's introduction of a new feature this July, allowing direct NFT exchanges between collectors, calculating profits and losses becomes even more convoluted. cryptact's support for OpenSea will help alleviate these complexities.

(*3) Mitsubishi UFJ Research & Consulting - "Trends in NFTs" 
(*4) MMD Research Institute - "Survey on NFTs (Non-Fungible Tokens)"

[Features Overview] 

With cryptact's integration with OpenSea, the world's largest NFT marketplace, the service will automatically calculate the complex gains and losses of NFT trades, offering comprehensive support from trade management to tax declaration. With a robust 70% coverage rate on OpenSea, we believe this will greatly contribute to efficient and secure asset management in the burgeoning NFT market.