Japanese crypto trader sentenced to one year in jail

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The Ishikawa Prefecture Court finds the Japanese merchant guilty of tax evasion by buying bitcoins. Now he faces a year in jail and $200,000 in recovery.

The defendant, 56-year-old Hideji Matsuda, concealed his financial operations in connection with the buying of cryptocurrency from 2017 to 2018, following which the Kanazawa court charged him with violating the Income Tax Act.

The court ruled that Matsuda had intentionally perpetrated a fraud and had not sent the necessary documentation to the tax office with details on its financial dealings with cryptocurrencies. According to Matsuda, the revenue from his operations amounted to 1.2 million yen or 11 thousand dollars. In reality, the trader got tens of times more-74 million yen or 678 thousand dollars.

The client himself advised the counsel that he had not been provided specific directions about how to measure the benefit from the profits earned from cryptocurrency trading correctly. And even though lawyers argued that the man had even filed a motion to change the cryptocurrencies revenue calculation matter before the charges brought against him, the prosecutor’s office remained firm. The Court has voted to dismiss the application for clemency and issued a final judgement.

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The case is most notable because it is the first time in Japan that a person has been prosecuted and sentenced to a period of tax evasion on cryptocurrencies. The trial itself started back in 2020.

By the way, the bitcoin industry in Japan – be it mining or digital currency exchange – is taxed up to 55%.

 

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