South Korean law enforcement officers have seized around 260 billion won ($183 million) worth of cryptocurrencies and virtual assets from local individuals and businesses in two years because they did not obey local taxation laws. Not long ago, the authorities investigated and targeted the notorious leader of Terraform Labs – Do Kwon – who was accused of gifting tokens to his family members as a way of tax evasion.
According to a recent report by the domestic South Korean media outlet – Yonhap News Agency, the South Korean financial authorities have confiscated more than $183 million in digital currencies since the beginning of 2021. The seizure cut across 17 cities including the South Korean capital Seoul and targeted different all people and enterprises that have neglected taxation rules.
The highest amount of confiscated cryptocurrencies were made in the most populous province in the nation – Gyeonggi – with over $37 million in cryptocurrencies confiscated. The largest cities in the region – Seoul and Incheon – had around $12 million and $3.5 million in digital assets seized respectively. Other major towns, such as Chungnam, Daejeon and Jeonbuk, were also included in the authorities’ operation.
On an individual level, South Korea law enforcement agents seized $8.5 million in cryptocurrencies from a Seoul resident who was not abiding by domestic tax regulations. The person’s portfolio comprised 20 digital currencies including Bitcoin (BTC) and Ripple (XRP) which made up most of his stash.After the confiscation, the unnamed individual paid all his tax arrears and requested his cryptocurrency holdings to be returned to him.
Although cryptocurrency tax rules in South Korea are still unclear, the local authorities started seizing virtual assets from people and businesses who were not presenting their transactions to the relevant institutions since 2020. Earlier this year, the South Korean government proposed to postpone the incoming 20% tax on crypto earnings until a comprehensive regulatory framework is structured in the industry. It is estimated that the tax could begin implementation by 2025.
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