Gyeonggi province’s strict action against cryptocurrency tax evasion results in the retrieval of $4.6m.
The Gyeonggi province in South Korea has implemented an advanced system to tackle tax evasion related to cryptocurrencies and has successfully retrieved $4.6 million in unpaid taxes from offenders. Previously, the process of identifying and seizing crypto assets from tax evaders took up to six months, but with the introduction of a new electronic management system, this duration has been reduced to just 15 days.
The system works by inputting the information of delinquent taxpayers and using their resident registration numbers to trace their mobile phone numbers, which helps in locating individuals registered on cryptocurrency exchanges. So far, the system has identified 5,910 tax evaders with crypto assets, resulting in the collection of $4.6 million from over 2,300 individuals within a year.
Noh Seung-ho, the head of the Provincial Tax Justice Department, emphasized the province’s commitment to fair taxation and stated that they will aggressively pursue dishonest delinquents who claim to have no money to pay taxes while dealing in virtual assets. This highlights their efforts to protect honest taxpayers.
In addition to this, the Gyeonggi province is strengthening its fight against tax evasion by enhancing collaboration with cryptocurrency exchanges and considering administrative measures against those who refuse to comply with data requests, leveraging the authority of the local government.
These efforts are taking place against the backdrop of the upcoming general election in South Korea, where both the ruling and opposition parties are advocating for pro-crypto policies. This political stance is particularly significant in a country renowned for its vibrant crypto trading scene.
For instance, the ruling People Power Party in South Korea has pledged to explore the possibility of spot Bitcoin exchange-traded funds (ETFs) and has proposed postponing the implementation of taxes on cryptocurrency profits, potentially pushing it back to 2027. This move follows a previous delay from 2023 to 2025, indicating a cautious approach towards regulating the growing digital asset market.
These developments demonstrate South Korea’s proactive approach to integrating cryptocurrencies into its financial system while ensuring compliance with tax laws.
