Chainalysis: Tax Evaders Exploiting "New Digital Assets" to Evade Taxes

Odaily reports that, according to Chainalysis monitoring, tax evaders are turning to digital methods like Bitcoin Ordinals and BRC-20 tokens in an attempt to hide assets from tax authorities.

Italian authorities recently cracked down on a tax evasion case involving an individual suspected of using Bitcoin Ordinals and the BRC-20 token standard to generate and conceal unreported capital gains of 1 million euros (approximately $1.1 million). The suspect used the Ordinals protocol and the BRC-20 standard to create tokens, which were then sent and listed on the market. The assets were sold at multiples of their original cost, with the profits transferred back to the main wallet in Bitcoin, and the proceeds were continuously reinvested into new inscriptions.

Chainalysis stated that using cryptocurrencies for tax evasion has a fatal flaw: the inherent transparency of the blockchain leaves a permanent and immutable trail. (cointelegraph)