South Korea Seizes over $47 Million Worth in Cryptos from Tax Evaders

The officials from the Gyeonggi provincial government in South Korea launched a massive crackdown on tax evaders who used Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to hide their earnings. According to the Financial Times, over $47 million worth of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC), Ethereum (ETH), and other digital assets were seized from 12,000 people who allegedly were involved in tax evasion, including a TV host, a doctor and thousands of wealthy South Koreans.

The crackdown is just one of many of the operations performed by other provinces in the last few months against evaders who rely on virtual currencies to bypass domestic tax rulings, such as the provinces of Daejeon, Gyeongju and South Gyeongsang.

“We will do our utmost to protect law-abiding taxpayers and fulfill our fair taxation mandate by probing and tracing assets that tax dodgers may be concealing in the midst of the recent cryptocurrency trading fervor,” Kim Ji-ye, Director-General of the Gyeonggi Province Fairness Bureau, commented on the recent crackdown.

In fact, the Gyeonggi provincial’s authorities claimed it was the most prominent crypto seizure “for back taxes in Korean history.” Moreover, they stated that the tax evaders allegedly used local crypto exchanges because they did not collect the resident registration numbers of account holders.

Investigation Procedures

In more detail, authorities reportedly compared mobile phone numbers registered at the crypto exchange accounts with those accused of evading taxes in South Korea. Although investigators did not disclose the name of the TV host involved in the tax evasion saga, they just said it was a “renowned home shopping channel show host” who owed 20 million Korean won in taxes but held 500 million Korean won in ETH. Furthermore, a real estate investor, owner of almost 30 residences, had 1.1 billion Korean won in cryptocurrencies despite owing 30 million Korean won in income taxes.

Quoting provincial officials, the Financial Times says that insolvency and liquidation proceedings will take place if the tax dodgers do not voluntarily pay their overdue taxes.