A recent report by the Japanese financial agency Nikkei says that Japan’s tax agencies have focused on tax-evading cryptocurrency traders. After a large-scale inspection in the Kanto region and other parts of the country, it was found that they had not paid 1.4 billion yen ($12.6 million). According to a person involved in the investigation, people from cities such as Saitama, Tochigi, Gunma, Niigata, and Nagano mainly profited from the purchase and sale of Cardano. The tax authorities identified 670,000 yen ($6 million) in the form of undervalued taxes. ADA traders either did not declare their profits or evaded taxes by fraud.
According to a tax accountant quoted by Nikkei, many people have made a profit due to the rapid rise in Cardano prices in 2021. However, given that the total volume of transactions reached 5 trillion yen ($39 billion) in May, this may seem like a more difficult task. Considering that more than 90 percent of those who participated in the initial Cardano coin offering (ICO) were from Japan, it is not surprising that the popular cryptocurrency project is often referred to as “Japanese Ethereum”. However, until recently, it was possible to trade ADA on foreign exchanges, such as Binance, only because of strict rules. ADA became available for trading in Japan on the Bitpoint exchange at the end of August.