South Korea Seizes $183 Million Worth of Crypto From Tax Evaders [Report]:
According to recent reports, South Korean law enforcement officers have confiscated around 260 billion ($183 million) worth of cryptocurrencies from local individuals and businesses in two years who were not abiding by local taxation laws.
In addition, the authorities has been targeting the fled leader of Terraform Labs – Do Kwon.
The latter has been accused of gifting tokens to family members as a way of tax neglect.
In line with reports by the domestic media outlet Yonhap News Agency, the South Korean authorities confiscated more than $183 million in digital currencies since the beginning of 2021.
The confiscation covered 17 cities, including the capital Seoul and targeted people and enterprises, neglecting taxation policies.
Different Cities and Confiscated amounts
The most populous province in the nation – Gyeonggi – saw the highest amount of confiscated cryptocurrencies worth over $37 million.
The largest cities in the region – Seoul, and Incheon – saw the respective confiscation amount of $12 million and $3.5 million.
Other renowned towns like Daejeon, Chungnam, and Jeonbuk, were not exempted during operations.
On Individual ground
On an individual ground, law agencies seized $8.5 million in crypto from a resident of Seoul who was a tax evader.
The victim’s portfolio had about 20 digital currencies with Bitcoin (BTC) and Ripple (XRP) forming most of his stash.
After the confiscation, the unidentified individual repented by paying his tax arrears while requesting for his holdings to be transferred back to him.
Although the crypto tax rules in South Korea are still sketch.
In 2020, the local authorities started seizing digital assets from people and businesses who were not reporting their transactions to the relevant institutions.
“The law and policy guarantee a stable investment environment for virtual currency, but fair taxation principles must be applied to the tax borne by all citizens.” Rep. Kim Sang-hoon said on the matter.
Meanwhile, earlier this year, the South Korean government proposed to postpone the already planned 20% tax on crypto earnings until a comprehensive regulatory framework is applied to the industry.
However, we believe by estimations that it might go live by 2025.