1 year ago
City authorities of Cheongju are looking to prehend cryptocurrency from anyone who owes astatine slightest $750 successful crypto taxes to the government.
The South Korean metropolis of Cheongju, the superior of North Chungcheong province, has said it intends to statesman confiscating cryptocurrency from section taxation delinquents.
The medication of Cheongju has requested 7 South Korean crypto exchanges to inquire into holdings of thousands of taxation evaders, the section quality bureau Yonhap reported connected Aug. 22.
City authorities reportedly ordered trading platforms similar Upbit and Bithumb to inquire into crypto assets of 8,520 users who beryllium astatine slightest 1 cardinal won ($750) successful section taxes. Following the inquiry, Cheongju authorities program to confiscate cryptocurrency from taxation delinquents, the study notes.
According to the metropolis administration, cryptocurrencies person been progressively utilized arsenic a means of concealing spot successful South Korea. This latest inaugural attack aims to guarantee that South Korean residents who person evaded their taxation responsibilities are held accountable.
Upbit and Bithumb did not instantly respond to Cointelegraph’s petition for comment.
In 2022, Cheongju medication reportedly managed to cod overdue taxes from 17 individuals aft receiving details of their cryptocurrency holdings from astir 16,000 crypto investors. The metropolis collected a full of 68 cardinal won ($51,000).
Tax-related cryptocurrency confiscations person accrued successful South Korea successful caller years. In 2022 and 2021 combined, the South Korean authorities confiscated arsenic overmuch arsenic 260 cardinal Korean won ($180 million) worthy of cryptocurrencies from taxation evaders. In 2021, the metropolis medication of South Korea’s superior Seoul seized crypto worthy 25 cardinal won ($22 million) from individuals and institution heads.
Related: Coin Center responds to US lawmakers’ petition for crypto taxation guidance
The seizures came soon aft the South Korean authorities successful 2021 enacted laws allowing regulators to prehend cryptocurrencies similar Bitcoin (BTC) from taxation delinquents.
South Korea isn’t the lone state that seizes cryptocurrency from taxation evaders. Last year, Argentina’s taxation authorization seized much than 1,000 cryptocurrency wallets linked to delinquent taxpayers successful the country. The United States Internal Revenue Agency besides practices cryptocurrency confiscations crypto from taxation evaders, according to IRS lawman subordinate main counsel Robert Wearing.
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