How to Convert a The5ers Payout to Yen: Rise → USDC → DAI → bitbank Fees and Tax Math (September 2026)
※ This article is based on the steps the site owner actually used to convert a The5ers payout to yen in September 2026, plus official information from the National Tax Agency (NTA), the Financial Services Agency (FSA), bitbank, and Rise (all confirmed September 28, 2026). The tax section is general information — consult a tax accountant for your own situation.
📢 Advertising / affiliate disclosure: This site has carried a The5ers affiliate link since September 25, 2026.
Summary
- Route: The5ers → (Rise) → USDC → (Arbitrum) → Trust Wallet → swap for DAI → (Arbitrum) → bitbank → yen
- Why convert to DAI: bitbank does not handle USDC (no trading pair for it). DAI, on the other hand, can be deposited via Arbitrum for free.
- Fees: 1 USDC for Rise → Trust Wallet, 0.2% for the USDC → DAI swap (100 USDC → 99.8 DAI), and 0.12% (taker, order book) to sell DAI on bitbank. On $3,545.67, the total loss works out to about 0.22% (roughly ¥1,200).
- Taxes come in three stages: ① the payout itself is miscellaneous income (雑所得) (converted to yen using the USD mid rate on the day it lands in Rise), ② USDC's FX gain/loss on the day you swap USDC for DAI, ③ DAI's trading gain/loss when you sell DAI on bitbank.
- A sanity check: if you don't hold any other USDC or DAI, the sum of ①–③ should come out to roughly the same amount as the yen you finally receive.
Steps I actually took
| Step | What I did | Fee |
|---|---|---|
| 1 | Requested a payout from the The5ers hub → received USDC via Rise (2nd payout, $3,545.67, September 24, 2026) | 3.5% on The5ers' side (varies by payout method) |
| 2 | Sent USDC from Rise to Trust Wallet on Arbitrum | 1 USDC (per the actual statement) |
| 3 | Swapped USDC → DAI (Arbitrum) inside Trust Wallet. Tested first with 100 USDC and received 99.8 DAI | 0.2% |
| 4 | Sent DAI to bitbank on Arbitrum | bitbank's deposit fee is free (gas on the sending side is separate) |
| 5 | Sold DAI for yen on bitbank | 0.12% taker / −0.02% maker on the order book (the dealer desk (販売所) is free but has a spread) |
| 6 | Withdrew yen from bitbank to a bank account | ¥770 for ¥30,000+ (¥550 under ¥30,000) |
As of September 28, 2026, the deposit to bitbank is still pending. I may end up converting it to yen later, together with the next payout. I'll add the actual amount once I sell.
You don't have to convert to yen right away. You can leave it as DAI and sell several payouts' worth at once. In that case, tax stage ③ (DAI's trading gain/loss) is settled in the year you sell, and the per-unit cost basis for DAI bought in multiple batches is averaged (see "How the tax works" below).
Notes on each step
- Rise's fee didn't match what's shown on the official page. Rise's help article "Withdrawal Fees & Minimums" lists $2.90 for a USDC withdrawal to Arbitrum. My actual statement showed 1 USDC. The page says fees are "reviewed periodically," so check your actual statement.
- Match the network. bitbank's DAI supports Ethereum, Arbitrum, and OP Mainnet. Don't send DAI that went out via Arbitrum to an address on a different network.
- Arbitrum gas is paid in ETH. Swapping and sending DAI in Trust Wallet requires a small amount of ETH on Arbitrum (some apps bundle the fee into the transaction for you).
- Test with a small amount first. I tested the swap with 100 USDC before doing the full amount.
Why DAI
In Japan, only exchanges registered with the FSA as an "Electronic Payment Instruments Exchange Service Provider (電子決済手段等取引業者)" can handle USDC (two companies as of August 2026; SBI VC Trade is the one that handles USDC). bitbank doesn't have a USDC trading pair, so sending USDC there as-is won't let you sell it. Swap it for DAI, which is pegged to the dollar, and you can cash out on bitbank.
How much did the fees cost ($3,545.67 example)
To make the math easy to follow, I'm using the following assumed rates (hypothetical).
- USD mid rate (TTM, the bank's mid rate) on the day it landed in Rise: ¥157.00
- TTM on the day it was swapped for DAI: ¥157.50
- Sale price of DAI on bitbank: 1 DAI = ¥157.20 (DAI/JPY was around ¥157 on September 28, 2026)
- Gas fees (ETH) are not included
| Stage | Remaining | Amount lost |
|---|---|---|
| Received via Rise | 3,545.67 USDC | - |
| Sent to Trust Wallet | 3,544.67 USDC | 1 USDC |
| Swapped for DAI (0.2%) | 3,537.58 DAI | ~$7.09 |
| Sold on bitbank (0.12%) | ¥555,441 | ¥667 |
Converting the payout to yen at the mid rate on the day it was received gives ¥556,670, so the total loss is about ¥1,229 (about 0.22%). Most of that is the 0.2% USDC → DAI swap. The actual yen amount will move with the exchange rate, but the fee percentage stays the same.
How the tax works
1. The payout itself (miscellaneous income)
In principle, prop firm payouts are miscellaneous income (雑所得); if you trade full-time and keep books, they can qualify as business income (事業所得) instead (see the prop firm tax guide for details).
- Which year's income is it? I couldn't find an NTA document that directly specifies the recognition date for a payout received in USDC. In practice, it's safest to use the day it lands in Rise as the reference point and stick with that same rule every time — not "the day you convert it to yen."
- What rate to convert at: foreign-currency transactions are, in principle, converted to yen using the TTM (telegraphic transfer middle rate, the bank's mid rate) on the transaction date (Article 57-3 of the Income Tax Act; Income Tax Basic Circular 57-3-2). Since USDC is dollar-denominated, the calculation is USDC received × that day's USD TTM.
You don't have to convert every transaction (three levels of batching)
Looking up the TTM for every single payout is tedious. The Income Tax Basic Circular also describes ways to convert in batches.
| Method | Basis | Condition |
|---|---|---|
| Each transaction at that day's TTM | 57-3-2 (the rule) | None |
| Batch by month (or week), using the TTM at the end of the previous month / start of the month, or an average TTM over a period of one month or less | 57-3-2 (note 2), 57-3-3 | Keep using the same method every year |
| Total a whole year in USD and convert once, at the year-end rate or the year's average TTM | 57-3-6 | You carry on the business "outside Japan (国外において)" and keep your income statement in a foreign currency. Keep using the same method every year |
- Since my offshore FX (Exness) days, I have totalled USD profit and loss in USD and converted it to yen once a year. That is the 57-3-6 method.
- 57-3-6 covers "individuals carrying on business outside Japan". Whether trading a foreign prop firm's account and being paid from abroad counts is not clear from the wording of the circular. If that worries you, batching by month is clearly allowed and safe either way.
- Whatever you choose, the most important thing is to keep using the same method every year (consistent application). Don't switch each year to whichever is more favorable.
What people actually do
In September 2026 I looked at tax accountants' explanations and service guides on how individuals with dollar income handle this (not only FX and prop trading, but also freelancers and investors).
| Income | Conversion commonly used in practice |
|---|---|
| YouTube / AdSense, app stores, Amazon KDP | The yen amount on the payment notice, as is (many people are paid in yen) |
| USD fees via Upwork, PayPal, Stripe, Wise | Tax accountants recommend the TTM on the date the income arises (delivery or invoice date) |
| US stock dividends (through a Japanese broker) | The broker converts, so nothing to do yourself |
| Crypto staking / airdrops | Market value when received (crypto tax tools convert automatically) |
| Offshore FX / prop firm payouts in USD | Guides almost all say the TTM on the trade or settlement date |
- Tax accountants mostly stop at: "monthly averages are clearly allowed by the circular; a yearly average is fine if 57-3-6 applies; as long as you keep using a reasonable method". I found no published case of an individual where the conversion method itself was disputed.
- Experts do not recommend recording the yen you got when you exchanged the money as your income. The correct approach is two parts: "income converted on the day you received it" plus "the FX gain or loss when you exchanged it".
- I found no crypto tax tool that imports USDC received via Rise automatically. Expect to keep records by hand.
In the end, what matters more than conversion detail is filing, keeping records, and being able to explain your method. Transfers from abroad over ¥1,000,000 are reported to the tax office (国外送金等調書), so keep your payout history, wallet transactions and where your rates came from.
2. USDC is an "electronic payment instrument"
Under the 2023 amendment to the Payment Services Act, stablecoins like USDC that are redeemable at par in a legal-tender currency became "electronic payment instruments (電子決済手段)" rather than crypto assets. The NTA's "Tax Treatment of Crypto Assets, etc. (FAQ)" (December 2025 / Reiwa 7 edition) classifies electronic payment instruments as monetary claims (金銭債権), and dollar-denominated ones as foreign-currency-denominated claims (外貨建債権).
- For individuals, the common view is to treat it the same as a foreign-currency deposit: any movement against the yen becomes FX gain/loss (miscellaneous income).
- That said, the NTA FAQ's question on electronic payment instruments is written for corporations. I couldn't find a document where the NTA specifically addresses USDC held by an individual in their own wallet or in Rise.
3. Swapping USDC for DAI realizes the FX gain/loss
DAI is a stablecoin backed by crypto assets, and since it isn't redeemable in legal tender, it counts as a crypto asset (暗号資産). Even though it's pegged to the dollar, it's a different thing from USDC for tax purposes.
- Buying DAI with USDC counts as buying a crypto asset with foreign currency, and USDC's FX gain/loss is realized on that day. The calculation is (TTM on the swap date − TTM on the day received) × USDC used.
- DAI's cost basis is the USDC used, converted to yen at the TTM on the swap date. The 0.2% swap fee is taken out of the DAI you receive, so it's naturally folded into the cost basis (purchase fees are included in the cost basis — NTA FAQ 1-5).
4. Gain/loss when you sell DAI on bitbank
Yen received from the sale − (DAI's cost basis + sale fee) becomes miscellaneous income (NTA FAQ 2-3). If you hold other DAI as well, the per-unit cost basis is calculated using the total average method (総平均法) (the default if you haven't filed otherwise) or the moving average method.
5. Fees and gas
- Purchase fees are added to the cost basis; sale fees are treated as a deductible expense (NTA FAQ 1-5, 2-3).
- I didn't find an NTA FAQ question that directly addresses transfer fees (the 1 USDC) or gas. Paying a fee in USDC counts as disposing of that amount of USDC.
- Paying gas in ETH counts as disposing of that ETH (a crypto asset). Keep a record of ETH's cost basis and how much you used, too.
- I couldn't confirm whether bitbank's yen withdrawal fee can be deducted as an expense, so it's not included in the calculation below.
Worked example ($3,545.67 payout)
The assumed rates are the same as in "How much did the fees cost" above.
| Stage | Calculation | Miscellaneous income |
|---|---|---|
| ① Payout (day it landed in Rise) | 3,545.67 USDC × ¥157.00 | +¥556,670 |
| ② Transfer fee, 1 USDC | 1 × ¥157.00 (same day, so no FX difference) | −¥157 (if deductible) |
| ③ USDC → DAI FX difference | 3,544.67 × (157.50 − 157.00) | +¥1,772 |
| ④ DAI's cost basis | 3,544.67 × 157.50 = ¥558,286 (for 3,537.58 DAI) | - |
| ⑤ Selling DAI | 3,537.58 × 157.20 = ¥556,108, fee ¥667 | −¥2,845 |
| Total | ¥555,440 |
The total roughly matches the ¥555,441 ultimately received (the difference is rounding). If you don't hold other USDC or DAI, you can sanity-check with "yen finally received ≈ miscellaneous income from this payout." Exchange rate movements just determine whether the number shows up in ③ or ⑤.
From here, you may be able to deduct costs incurred that year to earn the payout — such as challenge fees — as necessary expenses. A loss in miscellaneous income can't be offset against other income like salary (NTA Tax Answer No.2250), but the payout, the FX gain/loss, and the DAI gain/loss are all combined within the same miscellaneous-income category.
The filing threshold
- Salaried employees: if income other than salary is ¥200,000 or less for the year, you don't need to file a final tax return (NTA Tax Answer No.1900). You do still need to file a resident tax (住民税) return, though.
- Full-time traders, etc.: if you exceed the basic deduction and other thresholds, you need to file. See the prop firm tax guide for details.
What about the 20% separate taxation for crypto assets?
The amendment bringing crypto assets under the Financial Instruments and Exchange Act was promulgated in July 2026. Separate taxation (分離課税) will apply to sales on or after January 1 of the year following its effective date. As of September 2026, I couldn't confirm the cabinet order that sets the effective date (most commentary expects January 2028).
- Separate taxation is expected to apply only to sales of designated crypto assets through a registered domestic exchange. Swaps inside Trust Wallet are not covered, and whether selling DAI on bitbank would be covered depends on whether DAI ends up being one of the designated assets.
- The prop firm payout itself (①) has nothing to do with separate taxation and stays miscellaneous income.
What to keep records of
- The date it landed in Rise and the amount of USDC, for each payout
- The USD TTM on the landing date and the swap date (as published by the bank you use)
- The date/time of the swap in Trust Wallet, the USDC used, and the DAI received (transaction ID)
- The amount of ETH spent on gas
- bitbank's DAI deposit/sale statements (trade history can be exported as CSV)
prop-memo's dashboard lets you record payouts in USD. Logging the landing date and amount as it happens makes year-end tallying much easier.
FAQ
Q. Can I send USDC to bitbank as-is?
No. bitbank doesn't have a USDC trading pair, so you can't convert USDC to yen there. Swap it for DAI first, then send it (as of September 28, 2026).
Q. Does bitbank accept DAI on Arbitrum?
Yes. bitbank's DAI supports Ethereum, Arbitrum, and OP Mainnet, and deposits are free. Before sending, double-check that you've selected the right network on bitbank's deposit screen.
Q. Does just swapping USDC for DAI trigger a tax?
USDC's FX gain/loss is realized on the day you swap. If USD/JPY hasn't moved between the day you received it and the day you swapped, the difference is close to zero. DAI's gain/loss is realized when you convert it to yen on bitbank.
Q. Can I convert a year's USD profit and loss to yen in one go?
Income Tax Basic Circular 57-3-6 says individuals "carrying on business outside Japan" who keep their accounts in a foreign currency may convert everything at the year-end rate or the year's average mid rate. Whether a foreign prop firm counts can't be stated for certain, so there is also monthly batching (57-3-2 and 57-3-3), which is clearly allowed. Whichever you choose, the condition is to keep using the same method every year.
Q. Which tax year does the payout income fall in?
It's safest to use the day it lands in Rise as the reference point. Even if you convert it to yen the following year, the payout is income for the year you received it.
Q. Is this the cheapest route in terms of fees?
On this route, the biggest cost was the 0.2% USDC → DAI swap. Rise's fee display (Arbitrum $2.90) doesn't match what actually gets charged (1 USDC), so check your statement every time you withdraw. The5ers' own payout fee (3.5%) is much larger, so differences between routes are small by comparison.
Sources
- National Tax Agency, "Tax Treatment of Crypto Assets, etc. (FAQ)" (December 2025 / Reiwa 7): Q1-3, 1-5, 2-1, 2-3, 3-2
- National Tax Agency, "Income Tax Basic Circular 57-3-2, 57-3-3 and 57-3-6 (Conversion of Foreign-Currency Transactions)"
- National Tax Agency Tax Answer, "No.1900 Salaried Employees Who Need to File a Final Tax Return" / "No.2250 Offsetting Gains and Losses"
- Financial Services Agency, "List of Registered Electronic Payment Instruments Exchange Service Providers" (as of August 27, 2026)
- Financial Services Agency, "Outline of the Bill to Partially Amend the Financial Instruments and Exchange Act and the Payment Services Act"
- bitbank, "Fees", public API (DAI/JPY fees and list of trading pairs)
- Rise, "Withdrawal Fees & Minimums"
All confirmed on September 28, 2026.
Related prop-memo.com articles
- The5ers payout report: a record of the 1st (USDT) and 2nd (Rise) payouts
- The5ers payment methods guide: purchase and payout fees
- Prop firm tax and tax-filing guide
- The5ers guide
Written by
Hosono P | the prop firm strategist
I buy challenges with my own money and record everything through to the payout. Recorded payouts: ¥6.1M in total from Fintokei, Fundora and Funded7, plus $4,776 from The5ers (as of September 2026). Author of the semi-discretionary EA "ELDRA".