• A large number of Japanese cryptocurrency investors have failed to pay taxes this year.
  • Traders have profited off the incredible rally seen in Cardano price this year, but many have dodged taxes.
  • Authorities in Japan stated that there were $6 million in underreported taxes.

Japan is starting to strengthen taxation proceedings in cryptocurrencies as individuals have reportedly failed to pay taxes for cryptocurrencies, especially those who profited from trading Cardano (ADA). 

Japan cracks down on Cardano traders

Tax authorities in Japan are increasing scrutiny over tax processing on digital assets after the country found that a total of 1.4 billion yen was missing following a large-scale tax audit. 

According to the report by Japanese outlet Nikkei, individuals have increasingly used cryptocurrency investment as a “tax-saving measure” due to the new asset class being a legal gray area.

An individual responsible for the investigation noted that cities including Saitama, Tochigi, Gunma, Nigata and Nagano profited off of trading ADA, the native cryptocurrency of the Cardano blockchain. The authorities stated that there were $6 million in underreported taxes. 

Investors who were buying and selling ADA did not declare their profits or failed to pay taxes with the means of deception. 

Cardano, known as the "Ethereum killer," also gets the name “Japanese Ethereum” in the country, as over 90% of the participants in the initial coin offering (ICO) of ADA were from Japan. 

So far, taxation bureaus in the country have conducted six digital asset audits, with the Kanto region in Japan having monitored ADA trades for a number of years. 

A tax accountant in Japan revealed that many individuals were able to profit off of the ADA price surge in 2021, as Cardano rallied over 1,100% this year.

Cardano price to retest $2 before next leg up

Cardano price has formed a symmetrical triangle pattern on the 4-hour chart, as the Ethereum-killer continues to consolidate. 

Cardano price appears to be nearing the 23.6% Fibonacci retracement level at $2.19, where the 50 four-hour Simple Moving Average (SMA) sits. This support level emerges as the last line of resort for ADA before the bears take over, which could see the altcoin drop toward the lower boundary of the triangle at $2.08.

However, the downside trend line of the prevailing chart pattern would act as significant support for ADA. If the bulls step in at this point, Cardano price would likely continue to bounce within the technical pattern before hinting at future directional cues.

ADAUSDT

ADA/USDT 4-hour chart

Should a spike in buying pressure materialize, Cardano price would discover resistance at the October 3 high at $2.32 before eventually tagging the upper boundary of the triangle pattern at $2.34. Further obstacles may emerge at the 38.2% and 50% Fibonacci retracement levels, at $2.36 and $2.50, respectively.

 


Like this article? Help us with some feedback by answering this survey:

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price: Whales ready to push BTC higher, accumulate $931 million worth of Bitcoin

Bitcoin Price: Whales ready to push BTC higher, accumulate $931 million worth of Bitcoin

Large wallet investors on the Bitcoin blockchain have shown signs of sustained accumulation throughout the bear market. Analysts have predicted a rally in Bitcoin price in the short term.

More Bitcoin News

Ethereum price sees its dreams of $1,400 shattered

Ethereum price sees its dreams of $1,400 shattered

Ethereum (ETH) price action has been printing some nice gains with 7% on the docket in just two trading days this week. This third trading day indicates a change in sentiment that could see bearish pressures mounting. 

More Ethereum News

Cardano price action sees traders taking out their erasers as ADA price pulls back

Cardano price action sees traders taking out their erasers as ADA price pulls back

Cardano price is currently down over 1% for the day as traders cut their positions and take their gains out of fear price action could collapse anytime soon. 

More Cardano News

XRP price looks for a firm footing to catalyze a 20% rally

XRP price looks for a firm footing to catalyze a 20% rally

XRP price has produced a key signal that reveals the underlying bullish intent. The only requirement now is sustenance from the big crypto or another leg-up.

More Ripple News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP