Japanese authorities have always been strict with trading cryptocurrency in the country. Even with the adoption and trading of cryptocurrency in different countries, Japan started trading cardano officially in August of this year. The country’s Cardano investors have failed to pay their crypto taxes ultimately.
Cardano Traders Fail to Report Crypto Taxes
According to local news publication Nikkei today, many cryptocurrency investors in Japan have failed to report their taxes correctly and have not paid more than 1.4 billion yen (about $12.6 million).
Much of the unrecorded revenue is related to ADA, the native token of the Cardano blockchain and the third-largest cryptocurrency in the world with a market value of more than $ 70 billion.
According to a person on the audit, many investors are in the Kanto area, including the greater Tokyo area, as well as in cities like Saitama, Tochigi, Gunma, Niigata, and Nagano, which are particularly benefiting from ADA’s price hike. 2021.
According to reports, about $ 6 million of the total unspecified tax revenue was attributed to Cardano’s recovery.
Since the beginning of this year, ADA has risen more than 1,100% in value, hitting a record high of more than $3 in early September.
According to data from CoinMarketCap, the asset’s price has fallen since then, and at the time of writing, ADA was trading at $2.19.
Cardano is sometimes referred to as “Japanese Ethereum” and conducted an Initial Coin Offering (ICO) between 2015 and 2017, mainly focused on the Asian market.
Cardano and Cryptocurrency Legal Grey
Despite the intense interest, ADA didn’t go public in Japan until August this year, and Bitpoint became the first local exchange for breaking through strict regulatory barriers and listing assets.
Previously, Japanese investors could only trade ADA on foreign exchanges such as Binance, Kraken, or Bittrex.
As for unreported income, Japanese tax officials told Nikkei that with digital assets falling into a “legal grey area”, merchants increasingly turn to cryptocurrency investments as “tax-saving measures”.
People close to the investigation also alleged that cryptocurrency investors failed to declare profits or deliberately evaded taxes.