Tax evasion via digital assets is gaining momentum with decentralization and the development of the crypto sector. Faced with the growing threat, several governments have therefore decided to take action and fight against the phenomenon. This time, it’s South Korea’s turn to score a giant leap forward with this shot.
South Korea seizes $184 million in crypto assets for tax evasion
In early August, the National Tax Service (NTS) of South Korea has pledged to take action against tax evasion through virtual platforms and assets. It is with this in mind that the South Korean government has seized the assets of some suspected tax evaders. The amount of confiscated cryptocurrencies amounts to nearly 260 billion Korean won, or approximately $184 million at current exchange rates.
Of course, according to reports unveiled Thursday by the online editions Yonhap News and Maekyung, the official figures are provided by many sources. These include the Ministry of Security and Public Administration, the NTS, the Ministry of Economy and Finance of South Korea and the authorities of 17 other cities and provinces.
Recall that the seizure of digital assets has been effective in the country since the second half of 2020. As a result, out of a total exceeding 259.7 billion won, more than 84 billion was seized because of tax arrears. And more than 176 billion won of crypto assets due to non-payment of national taxes.
So far, the largest amount of crypto seized from a single individual is 12.5 billion won ($8.8 million). The latter, a resident of Seoul, held assets in nearly 20 currencies. Or 1.9 billion won in Ripple (XRP) and 3.2 billion won in bitcoin (BTC).
The Korean government joins many others in this fight
The fight against crypto fraud is gaining momentum. Indeed, many governments are now working to take steps to put an end to this recurring process. Recently, the UK introduced a bill to make it easier to seize cryptocurrencies. Called the Financial Crimes and Corporate Transparency Bill, it aims to develop the country while driving out dirty money.
Earlier this year, the US Secret Service said it had seized over $100 million worth of bitcoin (BTC) since 2015. Whatever tricks the scammers play, they now have the ability to trace the transfers. in cryptocurrencies through the blockchain.
South Korea released these crypto stats after NTS statements. Earlier this year, the Korean government imposed a 20% tax on all cryptocurrency gains through 2025. But AUAhead, a capital gains levy exceeding 2.5 million won is due to take effect in January 2023. These measures prove the country’s determination to stamp out crypto fraud.
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