In order to ensure tax compliance, a South Korean municipal has taken a tough position against crypto tax evasion. The city’s authorities are preparing to take cryptocurrency holdings from those who owe the government. They need to owe at least $750 in crypto taxes to be part of this opeartion.
The city administration of Cheongju has cooperated with seven major South Korean cryptocurrency exchanges. This includes Upbit and Bithumb, which will look into the crypto assets of over 8,000 citizens who have fallen behind on their local taxes. Once discovered, the city intends to seize the cryptocurrencies of these tax evaders.
This will serve as a lesson to others, and they will be less likely to make the same mistakes in the future.
In South Korea, cryptocurrency is rapidly being used to conceal riches, prompting this proactive move to hold tax evaders accountable. This program builds on the achievement of the city’s operations last year. This is when it collected $51,000 in back taxes from 17 individuals after inspecting the crypto holdings of around 16,000 investors.
Across the globe, similar attempts are being made. Over 1,000 cryptocurrency wallets belonging to tax evaders were confiscated by Argentina’s tax authorities. At the same time, the United States Internal Revenue Service seizes cryptocurrencies from those who are evading their tax obligations.
This investigation comes after the South Korean government passed legislation in 2021. The city’s action sends a strong message that tax avoidance via cryptocurrency will not be tolerated.
NEWS: 🇰🇷 #SouthKorean municipal has taken a tough position against crypto tax evasion.
— Walletor (@walletorapp) August 24, 2023
This measure will improve the economy, but it will also demonstrate to tax evaders that they can dodge their citizen responsibilities. Furthermore, this move demonstrates how closely officials and crypto exchanges collaborate to guarantee that no blockchain crime occurs. This association should help them prevent other forms of crypto crimes in the future.
Governments are increasing their efforts to guarantee that tax obligations are paid as cryptocurrencies gain popularity. Cheongju’s decision to seize crypto holdings from tax evaders serves as a reminder that digital assets have the same financial obligations as traditional assets.