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The South Korean government has seized around $184 million worth of cryptocurrency in two years over tax arrears, according to local media. Authorities in Seoul began confiscating virtual assets from people accused of tax evasion in 2021.
The amount of crypto-assets seized from South Koreans accused of tax evasion has reached nearly 260 billion Korean won (close to $184 million at current exchange rates), online editions Yonhap News and Maekyung revealed Thursday.
The reports cite official figures provided by the Ministry of Economy and Finance, the Ministry of Security and Public Administration, the National Tax Service (NTS) of South Korea and the governments of 17 cities and provinces.
Of the total over 259.7 billion won, more than 176 billion won of assets were seized due to non-payment of national taxes, and over 84 billion won of crypto was seized as a result of local tax arrears, the news channels said.
Almost a third of this cryptocurrency was seized in the capital Seoul (17.8 billion won), the city of Incheon (close to 5.5 billion won), and the rest in Gyeonggi province (over 53 billion won). The South Korean government approved the seizure of virtual assets in the second half of 2020.
The highest amount of crypto seized from a single individual since then was 12.5 billion won ($8.8 million). The person, a resident of Seoul, failed to pay 1.43 billion won in local taxes and had holdings in 20 digital currencies, including 3.2 billion won in BTC and 1.9 billion won in XRP.
This taxpayer chose to cover its obligations and asked to keep the crypto investment. When the Korean tax authority seizes a person’s exchange account or their assets, it sells the coins at the prevailing exchange rate, if the tax owed is not paid.
The statistical data on the seized crypto has been released after the NTS promised in early August to take strict action against tax evasion through virtual assets and platforms. Earlier this year, South Korea postponed a 20% tax on crypto-related gains until 2025. The tax, applicable to capital gains above 2.5 million won, was previously set to take effect in January 2023.
Do you think South Korean authorities will continue to seize crypto assets from taxpayers with outstanding liabilities? Share your thoughts on the topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Hyejin Kang
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