Japanese authorities have initiated a series of investigations against dozens of Cardano network investors over an alleged tax evasion, Nikkei reports. According to the local news outlet, the crypto investors have failed to pay as much as $12.6 million in taxes.
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Particularly, the Kanto Shinetsu National Taxation Bureau has reached out to investors from Tochigi, Saitama, Niigata, Nagano, and Gunma after ADA gained over 1000% from the beginning of the year, a source close to the audits told Nikkei. While the precise number of investors contacted by the regulator remains unclear, the Tokyo National Taxation Bureau has reportedly also initiated multiple investigations against the market.
The move comes after Japan announced plans to include crypto-related companies into its newly-created platform to combat money laundering.
According to Financial Services Agency (FSA) Chief, Junichi Nakajima, companies from the cryptocurrency market "have the same obligation as traditional financial institutions." The FSA reportedly wants to create a common system for financial companies verify if their clients do not violate the sanctions regime.
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