Japanese court has, for the first time, imprisoned a Bitcoin holder for tax evasion

A 56-year-old resident of the Japanese city of Komatsu, Hideji Matsuda, has been sentenced to one year in prison and a fine of 22 million yen (over $202,000) for concealing income from cryptocurrency transactions. The case marks the first such ruling in the country’s jurisprudence, local media reported.

According to the indictment, in the 2017-2018 tax returns Matsuda deliberately understated income earned from cryptocurrency trading. In total, he owed the state about 74 million yen (over $680,000) in taxes.

In his defence, the accused cited ignorance of cryptocurrency taxation law.

On March 9, the Kanazawa District Court found Hideji Matsuda guilty of data falsification.

In Japan, cryptocurrencies are recognised as a legal means of payment and are taxed. The tax rate is progressive and, in some cases, can reach 55%.

Earlier, some politicians agreed that tax rates on cryptocurrency transactions were “too high” and urged the government of Japan to review them.

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