South Korea has come down hard on citizens who with the help of cryptocurrencies managed to evade taxes. The seizures came as a result of a probe that South Korean officials called the biggest crypto seizure for back taxes in the county’s history. Following a prolonged investigation, the government has reportedly confiscated crypto assets worth $47 million from 12 wealthy citizens of the country who tried to avoid taxes.
"We will do our utmost to protect law-abiding taxpayers and fulfill our fair taxation mandate by probing and tracing assets that tax dodgers may be concealing in the midst of the recent cryptocurrency trading fervor," Kim Ji-ye, the director-general of the Gyeonggi Province Fairness Bureau, said. The seizures of bitcoins and other assets were the result of a large-scale investigation conducted by local tax authorities. More than 140,000 people were targeted by the tax watchdog. The confiscation came as a continuation of the policy of South Korean financial regulators aimed at tightening control over cryptocurrencies. Currently, crypto exchanges operating in the country are experiencing serious difficulties with meeting the requirements imposed on them.
According to the new rules, by the autumn of this year, trading platforms are required to start cooperation with banks and open accounts for customers where their real names will be indicated. However, such a proposal has already been opposed by financial institutions, fearing the risks of money laundering and other financial crimes. In addition, the government plans to introduce taxes on cryptocurrency trading.
