South Korean Government Seizes $22M in Cryptos From Tax Evaders

The South Korean government has reportedly seized around $22 million in cryptos from 676 of the alleged tax evaders in the city of Seoul.

April 23, 2021 | AtoZ Markets – The Seoul government has seized 25 billion won ($22 million) of digital currency from individuals and corporate executives who evaded taxes, The Korea Times reported.

In the course of the investigation, the National Tax Service identified 1,566 individuals and company executives with tax arrears in the capital of South Korea. After that, employees of the department confiscated cryptocurrency from 676 citizens, the total arrears for which amounted to about $25 million.

Related: South Korea Steps Up Investigation On Tax Evasion Via Cryptos

19% of the withdrawn funds were in Bitcoin, 16% in DragonVein and XRP, 10% in Ethereum.

After the seizure of assets, 118 violators paid more than $1 million in taxes. They also asked the government not to sell the seized cryptocurrency.

Taxpayers expect further growth in cryptocurrencies and think that it will be more profitable for them to pay off the debt,” the city officials said.

Recall that from January 1, 2022, South Korea will introduce a 20% tax on profits from trading in cryptocurrencies in the amount of over 2.5 million Korean won (approximately $2,230).

Read also: South Korea Plans to Crackdown on Illegal Cryptocurrency Transactions

Similar rules will be implemented when inheriting or receiving gifts in digital assets.

By September 2021, South Korean cryptocurrency exchanges must complete KYC procedures as part of the implementation of the Law on Special Payments. It also envisions a ban on anonymous cryptocurrencies.

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