Cheongju, the capital city of South Korea’s North Chungcheong province, has revealed its plans to seize cryptocurrency assets from individuals evading local taxes.
According to a local report from Yonhap on August 22, 2023, Cheongju’s municipal authorities have engaged seven South Korean crypto exchanges, including Upbit and Bithumb, to scrutinize the crypto holdings of 8,520 users who owe a minimum of 1 million won ($750) in taxes.
Upon receiving the results of this inquiry, the city administration plans to confiscate the crypto assets of the identified individuals.
The city administration has expressed concerns that some residents are resorting to cryptocurrencies to evade their tax obligations. This move is one of its initiatives to ensure that those who have done so be held accountable.
This measure mirrors a similar effort by Cheongju authorities in the previous year, which successfully reclaimed around 68 million won in taxes from 17 individuals.
In 2021, the South Korean government revised its tax regulations to grant authorities more power to seize crypto assets from wallets on centralized exchanges owned by individuals with unpaid taxes. Since then, the country has been proactive in recovering tax debts. Between 2021 and 2022, South Korean authorities managed to confiscate an estimated 260 billion Korean won ($180 million) worth of cryptocurrencies from tax evaders.
Meanwhile, recent developments in South Korea reflect the nation’s unwavering commitment to regulating the cryptocurrency landscape. The Supreme Prosecutor’s Office (SPO) established an interagency team of employees from various authorities, including the judiciary, finance, tax, and customs, to combat cryptocurrency-related offenses.
The SPO reported a startling 118% surge in cryptocurrency-related crime damages over the past five years, reaching an alarming total of 1.02 trillion won ($797.81 million) in 2022 alone.
The newly formed interagency team is expected to serve as a transitional protection mechanism for investors until comprehensive cryptocurrency market regulations are established through legislation.
Amidst this heightened focus on cryptocurrency crime prevention, the CEO of Bitsonic, a crypto exchange, was arrested on allegations of embezzlement involving user investments and deposits.
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