Korean government seizes $ 47 million worth of cryptocurrencies from tax evaders – Taxes Bitcoin News
South Korean authorities have identified thousands of tax evaders as part of an intensified action against tax evasion among crypto investors. After a lengthy investigation, the government has reportedly seized millions of dollars worth of cryptocurrencies.
Tax advisors target wealthy tax evaders in the greater Seoul area
More than 53 billion Korean won ($ 47 million) in crypto assets have been seized from 12,000 people who allegedly tried to hide money from the government. The funds were in Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies, Reuters reported, citing the government of the Gyeonggi province around the capital Seoul.
Some wealthy Koreans are among the targeted tax evaders. They have been accused of using local crypto exchanges to hide the assets as the trading platforms did not require account holders to provide their resident registration numbers. The authorities were able to locate them using their phone numbers.
One of the tax evaders is a well-known home shopping channel host who had 500 million won in coins including Ethereum and owed 20 million won in taxes to the state. An owner of 30 apartments kept Won 1.1 billion in crypto assets but did not pay Won 30 million in income tax. A doctor held 2.8 billion won in bitcoin and did not pay 17 million won to the government. If they fail to meet their tax obligations, the authorities threaten to open insolvency and liquidation proceedings.
Gyeonggi officials claim the month-long operation resulted in the largest “cryptocurrency back tax seizure in Korean history.” It comes after a broader study of the taxes of around 140,000 people. Kim Ji-ye, director general of the Gyeonggi Provincial Fairness Bureau, said:
We will do our utmost to protect law-abiding taxpayers and fulfill our mandate for fair taxation by investigating and prosecuting assets that tax evaders may be hiding amid the recent frenzy of cryptocurrency trading.
The South Korean government is increasing its influence on the crypto market
The recent offensive against tax evaders in the greater Seoul area is the government’s latest move aimed at tightening oversight of the country’s expanding crypto space. When it comes to trading digital assets, South Korea is one of the world’s leading markets. As crypto investing continued to grow in popularity last year, the Korean price of the largest capitalization cryptocurrency, BTC, hit $ 72,000, well above the global all-time high of $ 63,500.
Dozens of Korean exchanges are struggling to meet regulatory requirements to continue operating after implementing the stricter rules in September. The trading platforms must open bank accounts with real names for their customers in partnership with domestic banks. However, large financial institutions like Hana and K Bank are reluctant to partner with smaller exchanges because they fear exposure to financial crime.
A number of digital asset platforms have started removing high-risk coins in order to comply with upcoming regulations for the industry. The Korean Financial Services Commission wants it to step up its review of crypto transactions and send receipts to the country’s tax authorities from next year. The government is preparing to tax profits from crypto trading at a rate of 20% from January 2022 on amounts over 2.5 million won (around $ 2,200).
What do you think of the government offensive against crypto taxpayers in South Korea? Let us know in the comments section below.
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