April 19, 2024
A South Korean City Will Capture Crypto from Thousands of Tax Evaders
Policy & Regulation

A South Korean City Will Capture Crypto from Thousands of Tax Evaders

Cheongju city officials are attempting to take cryptocurrency from everyone who owes the government a minimum of $750 in cryptocurrency taxes.

The capital of North Chungcheong province in South Korea, Cheongju, has declared its intention to start seizing cryptocurrencies from local tax evaders.

According to a report from the local news agency Yonhap on August 22, the local government of Cheongju has asked seven South Korean cryptocurrency exchanges to look into the assets of thousands of tax evaders.

Local tax debts of at least 1 million won ($750) have reportedly led to orders from city authorities for trading platforms like Upbit and Bithumb to look into the cryptocurrency holdings of 8,520 members. According to the article, Cheongju authorities intend to seize cryptocurrencies from tax evaders after the investigation.

The local administration claims that using bitcoins to hide property is becoming increasingly common in South Korea. This most recent effort is to make sure that South Korean citizens who have avoided paying their taxes are made accountable.

According to reports, the Cheongju government collected unpaid taxes from 17 people in 2022 after learning about the bitcoin assets of roughly 16,000 crypto enthusiasts. A total of 68 million won ($51,000) was collected by the city.

In recent years, South Korea has seen a surge in the confiscation of cryptocurrencies for tax purposes. The South Korean government seized cryptocurrency worth up to 260 billion Korean won ($180 million) from tax evaders in 2022 and 2021 combined. In 2021, the Seoul local government in South Korea’s capital seized cryptocurrency from business owners and people valued at 25 billion won ($22 million).

The seizures happened shortly after the South Korean government passed legislation enabling regulators to retrieve digital currency from tax evaders in 2021, including Bitcoin.

Not only South Korea, but other nations also seize cryptocurrencies from tax evaders. More than 1,000 cryptocurrency wallets associated with overdue taxpayers in Argentina were seized by the country’s tax office last year. According to Robert Wearing, a deputy assistant chief counsel for the IRS, the agency also confiscates bitcoin from tax evaders.

Image: Wallpapers.com

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