New Report Suggests About 8,000 Korean Residents May Lose Digital Assets Over Tax Evasion
Financial regulators in the South Korean city of Cheongju are set to confiscate digital assets from local tax evaders.
According to a report on Aug 22 by Yongap, a local news agency, the authorities of the city have set plans in motion to clamp down on virtual asset holders in centralized exchanges who have not filed taxes.
The city has opened an inquiry into seven crypto exchanges requesting the filing of certain information including the portfolio of 8,520 users who owe the government at least 1 million won ($750).
Centralized exchanges like Upbit and Bithumb were mentioned in the report as the city explains the need to inquire about the holdings of residents and generate income for the government.
In the past few years, local administrations have bemoaned the use of digital assets to conceal property and evade taxes. The trend of authorities has been to partner with centralized exchanges to get the holdings of traders and investors although some users devise other means like privacy coins and decentralized exchanges.
Specifically in South Korea, authorities have stressed the necessity to clamp down on tax avoidance stating the citizens would be held accountable.
Last year, Cheongju authorities requested the details of 16,000 digital asset investors as they pursue claims of tax evasion. The city flagged 17 persons and collected up to 68 million won, about $51,000.
Both authorities and citizens may be deploying new methods to outpace the other in terms of taxes. Several tax authorities have criticized “unpatriotic” moves by digital asset investors to hide under the guise of cryptocurrency investment to avoid paying taxes.
Many governments including recent regulations in Nigeria and Australia have widened the tax net to
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