South Korean tax agency identifies more than 2,400 fraudsters who have used cryptocurrencies to circumvent taxes – Bitcoin Regulation News


South Korean authorities appear to be focused on stepping up anti-tax avoidance measures across the country. The country’s tax watchdog has profiled thousands of fraudsters who have relied on cryptocurrencies to hide assets worth billions of Korean won.

Evaders hid a total of $ 32.24 million in assets

According to the Korea Herald, the South Korean National Tax Service (NTS) has identified 2,416 people who allegedly hid their assets in crypto to circumvent taxes. The agency said fraudsters were using bitcoin (BTC), ethereum (ETH), ripple (XRP), among other cryptos, to avoid scrutiny by tax authorities.

Officials say the assets involved in tax evasion total 36.6 billion won ($ 32.24 million). In addition, the NTS said it primarily targets people who owe more than 10 million won ($ 8,800) in taxes.

Still, the tax authorities have managed to recover hidden assets in cash and bonds. At the same time, they opened an investigation against 222 of those who allegedly escaped paying taxes. The agency issued the following press release:

The recent investigation was part of our continued efforts to strengthen the crackdown on anti-social tax evasion. We will capture highly intellectualized cases (tax evasion) and quickly redeem their hidden properties.

National crypto exchanges have collaborated with the NTS

The NTS said it relied on domestic crypto exchanges to collect personal data from suspected tax evaders. It included business reports and individual banking information, which are in full compliance with the strict regulations that currently govern the crypto sphere in South Korea.

By law, South Korean crypto exchanges must use the real name system by partnering with a financial institution to provide this service.

Banks will be required to exercise due diligence on the crypto companies they deal with, ensuring that the Korea Financial Intelligence Unit (KOFIU) is properly informed.

The Bitcoin.com press office reported that the South Korean government has released an amendment to introduce a 20% tax on cryptocurrency trading profits.

Although it was enacted in February, the law clarified earlier this year that the new rule will begin to apply in 2022.

What do you think of the recent crackdown on tax evaders in South Korea? Let us know in the comments section below.

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Esther L. Steinbach

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