South Korea

South Korean authorities seize $184 million in cryptocurrency against unpaid taxes

Despite the South Korean government’s deep interest in metaverse and web 3 technology, the country has strict policies when it comes to regulations and taxes.

According to the local news agency, Yonhap News South Korea’s tax authority on Thursday confiscated 260 billion won ($184.3 million) in cryptocurrency owned by tax evaders. However, the agency froze that amount in a time frame between 2021 and 2022.

Related reading: US judges’ orders linked to production of financial records proving USDT support

The largest sum confiscated from a single tax evader is $8.87 million, according to data provided by Canadian Representative Kin Sang Hoon. He stated that the defendant was holding Bitcoin and XRP from Ripple, among other crypto assets.

It is worth noting that cryptocurrency exchanges under the implicit rule in South Korea are responsible for providing data about their customers to the tax authorities. Similarly, the agency has cracked down on tax evaders since the beginning of this year and confiscated millions of crypto assets.

The IRS is freezing tax evaders’ crypto assets after exchanges identify delinquent payments on the platforms. Then, if the amount of tax remains unpaid, the officers sell the confiscated property at the market price.

The report regarding the confiscation of crypto assets in exchange for unpaid taxes comes two months after the South Korean authorities announced that they would postpone a decision to impose a 20% tax on crypto earnings until 2025.

Kim Sang-hoon, a member of the National Assembly’s Strategy and Finance Committee and a member of the House of Representatives of the right-wing People’s Party of South Korea, has been collecting information about the confiscation of crypto assets. The report also includes statistics from the Ministry of Finance and other agencies.

Bitcoin price is currently trading above $19,000. | Source: BTCUSD price chart from TradingView.com

South Korea has stricter regulations

After the collapse of TerraLuna, state authorities have heated up on cryptocurrency regulations. The regulators have screened several cryptocurrency exchanges operating in South Korea. Consequently, the months-long investigation prompted the South Korean authorities to implement strict laws that focus excessively on the risks involved in cryptocurrencies.

After that, many Cryptocurrency exchanges closed their stores Because of the tightening of KYC and AML rules. While others currently working in the system provide data to the government about customers under implicit regulations.

Although, the South Korean authorities initially started freezing tax evaders’ crypto assets in 2020. The Tax Law Amendment Act 2021 granted the National Tax Service (NTS) the power to seize crypto assets without waiting for court approval. The law entered into force on January 1, 2022.

One of the officials explained that the amendment aims to combat the growing number of tax evaders who are using cryptocurrencies to escape from their assets.

Related Reading: Bitcoin Whales Bought $3.12 Billion in BTC in Last 24 Hours as Cryptocurrency Prepares to Raise Federal Reserve

Ministry official added in time;

“Property seizure actions cannot be applied when government-claimed assets are held in electronic wallets. The review will allow direct seizure without court-approved change to property records. Assets held by tax evaders in the form of cryptocurrencies will no longer evade seizure.” and confiscation.”

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