South Korean Officials Seize More Than 62 Billion Won from Tax Evaders in the Crypto Industry
According to local reports, authorities in Gyeonggi Province, South Korea, have successfully employed a specialized electronic management system to track down and collect unpaid taxes from individuals evading cryptocurrency taxes. With political parties promoting their crypto-related plans, this is how they managed to collect 62 billion Won in tax evasion cases.
Revolutionizing Tax Collection
The electronic management system implemented by Gyeonggi Province represents a significant breakthrough in combating tax evasion associated with virtual assets. When the delinquent individuals’ information is inputted into the system, it automatically triggers a series of actions, including tracking, freezing, transferring, selling, and retrieving Korean Won assets.
This innovative approach has significantly reduced the time required for these procedures to approximately 15 days, compared to the previous arduous process of exchanging official documents, which could take up to six months.
A regional tax official stated, “This electronic system has allowed us to identify nearly 5,910 individuals who owe more than 300,000 KRW in local taxes and hold virtual asset accounts, resulting in the successful collection of 62 billion KRW in outstanding taxes in the past year.”
Local authorities utilized the system to cross-reference the resident registration numbers of delinquent taxpayers with their mobile phone numbers. This data-driven approach enabled officials to track individuals and greatly increase the success rate of identifying cryptocurrency holders through local exchanges.
The use of this electronic system represents a significant step forward in combating tax evasion in the country’s crypto market. The system streamlines the process, significantly reducing the time required for investigations and enabling efficient measures such as asset seizure and liquidation.
Political Party Promises on Crypto Ahead of Elections
A few days ago, South Korea’s political party, the People Power Party, made pledges related to cryptocurrency ahead of the upcoming national elections on April 10. Both the ruling People Power Party and the opposing Democratic Party are making promises regarding crypto.
The People Power Party has outlined several poll promises, including the introduction of spot Bitcoin exchange-traded funds (ETFs) and the establishment of a “digital asset promotion committee.” Additionally, the party commits to proposing laws and sanctions, prioritizing a regulatory framework before implementing a cryptocurrency gains tax scheduled for January 2025. This proposal could potentially delay the tax implementation until 2027.
A party member stated, “I believe there is a need for at least a two-year delay until the amendment is passed and such a system is actually built.”
On the opposing side, the Democratic Party has yet to release its proposal, which includes allowing investors to purchase spot Bitcoin ETFs. Meanwhile, infamous South Korean national Do Kwon has been ordered to be extradited to the US following his eight criminal charges of fraud related to the TerraUSD and LUNA crash in 2021.
Tags: Crypto Regulations