Japanese Tax Authorities Tighten Control Over Tax Processing Of Digital Assets

Japan is starting to tighten tax procedures on cryptocurrencies as individuals reportedly do not pay taxes on cryptocurrency income, especially those who have profited from Cardano trading (ADA). This year the ADA price is up more than 1,100%.

According to a report by the Japanese agency Nikkei, individuals are increasingly using cryptocurrency investments as "tax savings measures" as the new asset class is in a zone of legal uncertainty. It is noted that cities such as Saitama, Tochigi, Gunma, Nigata and Nagano have profited from trading ADA, the native cryptocurrency of the Cardano blockchain. The authorities said that the amount of taxes was understated by 1.4 bln yen.

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Investors who bought and sold ADA did not declare their profits or failed to pay taxes with the means of deception. Cardano, known as the "Ethereum killer", was also dubbed "Japanese Ethereum" in the country as over 90% of ADA's initial coin offering (ICO) participants were from Japan.

Image: Daily Advent