Digital currency usage is swiftly spreading globally, and concurrently, there’s a development worth noting in Cheongju, South Korea. The city is considering the confiscation of cryptocurrencies from individuals who are yet to settle their tax obligation.
As of August 22nd, a local news agency called Yonhap revealed that the authorities in Cheongju City have directed seven distinct crypto exchanges within South Korea to cooperate in an investigation. The focus of this investigation is on the accounts of numerous individuals who have not fulfilled their tax obligations.
Both Upbit and Bithumb crypto exchanges actively participated in the city officials’ investigation. The authorities purportedly mandated these trading platforms to delve into the cryptocurrency holdings of 8,520 users who have outstanding local tax amounts of at least 1 million won ($750).
Subsequent to the examination, the city aims to confiscate cryptocurrency holdings from individuals who have neglected their tax obligation. This measure is being taken due to the employment of cryptocurrency as a means to conceal wealth within South Korea.
The primary objective of the city is to guarantee the accountability of individuals who have failed to meet their obligations. This is in response to the evident increase in cryptocurrency confiscations related to tax issues in South Korea over recent years.
Upon combining the years 2022 and 2021 the South Korean government achieved the significant feat by confiscating cryptocurrency assets amounting to a value of 260 billion Korean won ($180 million) from individuals who were intentionally avoiding their tax responsibilities.
Also Read: Coin Center Advises Senators on Crypto Taxation Framework
