South Korean authorities seize $47 Million in cryptocurrency from tax evaders

Digital Currencies, Tax Evasiongracechurchfcp
  • Cryptocurrency worth millions of dollars has been seized by South Korean authorities
  • More than 53 billion Korean won ($47 million) in cryptocurrency assets were seized from 12,000 people accused of attempting to hide money from the government
  • In order to comply with upcoming industry regulations, a number of digital asset platforms have begun to delist high-risk coins

Thousands of tax evaders have been identified by South Korean authorities as part of a growing crackdown on tax dodging among cryptocurrency investors. The government is said to have seized cryptocurrency worth millions of dollars after a lengthy investigation. It was the largest cryptocurrency seizure for back taxes in Korean history, according to officials. According to the Gyeonggi government, local exchanges that did not collect resident registration numbers of account holders were used to hide assets. Instead, investigators used the alleged tax evaders’ mobile phone numbers to track them down. One of them was a well-known home-shopping channel show host who owed over $17,000 in taxes and had $440,000 in cryptocurrency.

In the greater Seoul area, tax agents are pursuing wealthy tax evaders

More than 53 billion Korean won ($47 million) in cryptocurrency assets were seized from 12,000 people accused of attempting to hide money from the government. According to Reuters, the funds were in bitcoin (BTC), ethereum (ETH), and other cryptocurrencies, as reported by the government of Gyeonggi Province, which surrounds Seoul.

A number of well-heeled Koreans have been identified as tax evaders. They were accused of concealing the assets by using local crypto exchanges, which did not require account holders to provide their resident registration numbers. Using their phone numbers, authorities were able to locate them.

A well-known home shopping channel host, for example, had 500 million won in coins, including ethereum, and owed the state 20 million won in taxes. A property owner with 30 residences kept 1.1 billion won in cryptocurrency but failed to pay income tax of 30 million won. A doctor had 2.8 billion won in bitcoin but owed the government 17 million won. Authorities threaten insolvency and liquidation proceedings if they do not meet their tax obligations.

Officials in Gyeonggi claim that the months-long operation resulted in the largest cryptocurrency seizure in Korean history for back taxes. It follows a larger investigation into the taxes of approximately 140,000 people. In the midst of the recent cryptocurrency trading frenzy, Kim Ji-ye, Director General of the Gyeonggi Province Fairness Bureau, stated that they will do everything possible to protect law-abiding taxpayers and fulfil our fair taxation mandate by probing and tracing assets that tax dodgers may be concealing.

The South Korean government is tightening its grip on the cryptocurrency market

The latest government move aimed at tightening oversight of the country’s expanding crypto space is a recent offensive against tax evaders in the greater Seoul area. South Korea is one of the world’s leading markets for digital asset trading. The Korean price of the cryptocurrency with the largest market cap, BTC, reached $72,000, well above the global all-time high of $63,500, as crypto investing grew in popularity over the past year.

Following the implementation of stricter rules in September, dozens of Korean exchanges have struggled to meet regulatory requirements in order to continue operating. Trading platforms must work with domestic banks to open real-name bank accounts for their customers. Major financial institutions such as Hana and K Bank, on the other hand, are hesitant to work with smaller exchanges, citing concerns about being exposed to financial crime.

In an effort to comply with upcoming industry regulations, a number of digital asset platforms have begun to delist “high-risk” coins. Starting next year, the Korean Financial Services Commission wants them to increase their crypto transaction screening and submit receipts to the country’s tax authorities. From January 2022, the government plans to tax profits from crypto trading at a 20% rate for amounts exceeding 2.5 million won (roughly $2,200).

Article credit: https://www.thecoinrepublic.com/2021/06/26/south-korean-authorities-seize-47-million-in-cryptocurrency-from-tax-evaders/