Mathisen Marketing

Your Marketing Blog

South Korea tax agency seizes nearly $200M in digital assets from tax offenders

Stack of coins money with South Korea flag

As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.

Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase!

The South Korean government has stepped up efforts to crack down on digital asset tax crime in the country by seizing their holdings. Local news outlet reported that the amounts seized from the government were a whopping KRW 260 billion ($182.3 million).

The seizures continued for two years, beginning when South Korean authorities passed a law authorizing the confiscation of tax evaders’ assets. The country’s Ministry of Strategy and Finance, Ministry of Administration and Security and the Tax Administration cooperated in the seizure covering 17 provinces.

A total of KRW 126.3 billion ($88.5 million) was confiscated for non-payment of national tax. In comparison, law enforcement seized KRW 83.4 million ($58,500) for failing to comply with local tax requirements in their jurisdictions. Seoul, Incheon and Gyeonggi-do have the highest number of tax crimes and accounted for 30 percent of the total amount seized, with Gyeonggi-do recording more than 53 million South Korean won ($37,176) seized.

A resident of Seoul was responsible for the largest single seizure, as the report stated that a whopping KRW 12.49 billion ($8.7 million) was taken from him. Authorities confirmed that he owed KRW 1.43 billion ($1.003 million) in local taxes and, as required by law, seized his holdings, which included up to 20 different virtual assets, including BTC.

According to tax regulations, the authorities have the right to sell the seized digital assets at the fair market price in order to collect tax arrears. However, some individuals have cited the law as bordering on draconian.

“The law and policy guarantee a stable investment environment for virtual currency, but the taxation paid by the citizens must be subject to fair taxation principles,” said President of the Republic Kim Sang-hoon.

New system and new laws

In March, South Korea elected a pro-virtual currency president after a heated presidential race. Yoon Suk-Yeol, South Korea’s new president, promised to “reform regulations that are far from reality and unreasonable” to promote the growth of the country’s digital asset ecosystem.

Yoon’s administration has postponed the 20% tax on virtual currency earnings above $1,900, or KRW 2.5 million, until 2025. The implementation of the law is changing due to “stagnant” market conditions and the need to issue new rules to protect investors.

Despite Yoon’s best efforts to improve the sector, Terra’s collapse in May has pulled the ecosystem back two steps as regulators shine a spotlight on operators for their role in the incident.

See: BSV Global Blockchain Convention Panel, Law and Order: Blockchain and Digital Asset Regulatory Compliance

width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>

New to Bitcoin? Check out CoinGeek Bitcoin for beginners section, the definitive resource guide to learn more about Bitcoin – as originally designed by Satoshi Nakamoto – and blockchain.

Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase!

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts

  • ConsenSys updates MetaMask privacy policies after backlash

    ConsenSys updates MetaMask privacy policies after backlash

    Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! MetaMask’s creators, ConsenSys, announced they were modifying their system because of consumer complaints about data collection practices. In a recent statement, ConsenSys explained how it shared Internet Protocol data about MetaMask users with Infura, a service that allows customers to […]

    Read More

  • What Could Trigger A Fresh Increase

    What Could Trigger A Fresh Increase

    Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! Bitcoin price started a downward correction from the $17,500 resistance. BTC is trading above the $16,800 support and may start another uptrend. Bitcoin tested the $16,800 support zone and traded as low as $16,888. The price is near $17,000 and […]

    Read More

  • UK concludes plans for regulating crypto industry smoothly

    UK concludes plans for regulating crypto industry smoothly

    Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! Prime Minister Rishi Sunak stated that “essential laws” will help make Britain a global center for crypto-asset technology. It encourages tomorrow’s businesses to invest in, disrupt and rank UK banks. A bunch of new rules The UK is finalizing plans […]

    Read More