The investor in Cardano (ADA), the popular cryptocurrency in Japan, failed to pay taxes this year. Despite the rally in Cardano, Japanese investors failed to pay a total of $6 million in taxes this year.
According to reports in the international press, the Cardano (ADA) cryptocurrency, which is popular in Japan, has provided its investors with very good earnings this year, but the Japanese government has reported that taxes on these earnings have not been paid in full. It is estimated that the majority of investors are evading or attempting to evade taxes.
In the face of this situation, the Japanese government stated that they want to control crypto money taxation much more tightly.
Japan Hits Cardano Investors Hard
Tax controllers in Japan are stepping up scrutiny over tax processing on digital assets after a large-scale tax audit in the country found that a total of 1.4 billion yen was missing.
According to the Japanese Nikkei, individuals are investing more in this area, taking advantage of the gray area of the crypto money sector, which is considered as a new asset class. It continues to use the income obtained as a result of these investments as a “tax saving measure” by not reporting it.
A person in charge of the investigation noted that cities such as Saitama, Tochigi, Gunma, Nigata and Nagano profit from trading ADA, the native cryptocurrency of the Cardano blockchain. Authorities determined that there was $6 million in under-declared taxes.
Known as the “Ethereum killer,” Cardano also gets the nickname “Japanese Ethereum” in the country, as over 90% of the participants in ADA’s initial coin offering (ICO) are from Japan.
Japan has so far conducted six digital asset audits. In addition to all this, the Kanto region in Japan has closely followed ADA transactions for several years. A tax accountant in Japan noted that many profited from the ADA price increase in 2021 as Cardano rallied over 1,100% this year.