South Korean Authorities Act on Cryptocurrency Tax Evasion

City officials in Cheongju, South Korea, are taking assertive measures against cryptocurrency-related tax evasion, according to a report by local news agency Yonhap on August 22.

To execute these measures, the Cheongju administration is collaborating with seven prominent South Korean crypto exchanges, such as Upbit and Bithumb.

The focus of this initiative is to investigate the crypto holdings of tax delinquents.

Approximately 8,520 users of these platforms are found to owe at least 1 million won ($750) in local taxes.

This strategic move comes as a response to the growing concern of cryptocurrencies being exploited to conceal wealth within the country.

Upon completion of the ongoing investigations, city authorities plan to seize crypto assets from these tax evaders.

This step is part of a broader strategy to establish equitable taxation practices in the digital asset domain.

The crackdown on tax evasion involving cryptocurrencies has gained momentum over the past year.

South Korean tax authorities have already seized 260 billion won ($180 million) worth of crypto assets since 2020 due to tax evasion.

The National Tax Service (NTS) is at the forefront of this crackdown, thanks to amendments to tax laws that grant the legal authority to demand the transfer of virtual currency from tax evaders and exchanges.

The NTS employs a "compulsory collection" approach, which leads to tax payment settlements and, in certain instances, the liquidation of seized coins.

Coinlive previously reported on how South Korea launched a Joint Investigation Centre to tackle crypto crimes.