South Korea cracks down on crypto users evading tax 

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If rates in the crypto sector climb, there has been an increase in illegal activity on the other side of the market. On Monday, the South Korean tax department allegedly caught 2,400 individuals storing money in virtual currency in an effort to evade tax.

The National Tax Service gathered data from digital currency exchanges and captured 2,416 tax criminals who had stashed money in Bitcoin, Ethereum, and XRP. The estimated amount of these undisclosed properties amounted to 36.6 billion South Korean Won [$32.24 million] per official source.

 

As per reports:

“The probe targeted people with over 10 million won in delinquent taxes, and the hidden assets were recovered in the form of cash and bonds. The tax agency has launched further investigations on 222 of those people, who allegedly evaded further tax payments.”

South Korea has been working proactively to kerb illegal crypto-related practises. Recently, the government of Gyeonggi Province has declared a “intense” crackdown on crypto-based multi-level marketing schemes [MLMs] and on the manipulation of initial coin offerings [ICOs].

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Despite the crackdown within nations, the number of cases of cyber fraud has increased due to the rise in cryptocurrency price instability. Investment volume in crypto rose to 1.59 million in 2021, while trades totalled 8 trillion won a day. This was an 8-fold rise relative to 2020 and shows the growth of crypto in the area.

There have been increased cases of criminal activity in various parts of the world, with blockchain gaining popularity. In May 2018, the Supreme Court of South Korea ruled that virtual currencies belonged to the class of intangible properties and were subject to confiscation.

As per reports, an official source claimed:

“The recent probe was a part of our ongoing efforts to strengthen a crackdown on anti-social tax dodging. We will capture highly intellectualized (tax evading) cases and quickly redeem their concealed properties.”

Interestingly, the government is strengthening the legislation on cryptocurrencies, and from January 2022, consumers will have to pay 20% tax on gains of over 2.5 million won on crypto purchases.

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