After bagging some massive profits, it’s been reported that the majority of these traders refused to pay taxes. According to financial audits from Nikkei, traders in many parts across Japan have avoided paying taxes to tax collecting agencies in Japan. As a result, these agencies have zeroed in on the culprits.
Nikkei disclosed that cities, such as Saitama, Nagano, and profited off trading Cardano. However, the traders were dubious enough not to pay their dues to the Japanese tax collecting agency. Now, they have drawn the attention of the authority, who is now after them.
ADA Traders Were Underreporting their Taxes
According to reports, ADA traders refused to pay a total of $12.6M to the tax authority. In addition, those who profited from selling and buying ADA underreported their taxes in excess of $6M. Overall, these traders were either underreporting their taxes by not declaring profits or found a way to avoid paying them all together deceptively.
Nikkei revealed that many Cardano traders realized huge profits from trading ADA due to the altcoin’s rapid price increase in September due to the much-anticipated Alonzo hard fork upgrade. The price of Cardano spiked by over 17% to $2.78, eclipsing the run of losses it had recorded days prior. Japanese ADA traders capitalized on the speculation surrounding Cardano’s smart contracts and made huge volumes of deals, amounting to several millions of dollars in Japanese Yen.
Taxation bureaus across all regions are conducting crypto audits, but so far, only the bureau in the Kanto region has concluded its audits. The bureau has been observing crypto transactions in that area for years. With the total transaction volume amounting to almost $39B as of May, it will be a Herculean task to come up with various audit reports on cryptocurrency transactions from the Japanese regions.
Japanese are Fond of Cardano
Cardano’s ADA has been the favorite altcoin for the Japanese since its Initial Coin Offering, so much that they called it the “Japanese Ethereum.” During the Cardano ICO, over 90% of those who participated were Japanese.
However, it was only possible to trade the crypto on foreign exchanges like Binance, as Japan’s tough regulations had hindered its enthusiastic citizens from trading the coin in the country. Japanese were given the freedom to trade ADA in August after the Bitpoint exchange listed it, joining the likes of BTC, ETH, and BCH. Cardano is currently trading at $2.18 in today’s market.
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