Tax Evaders in South Korean City Could Lose Crypto Holdings

Tax Evaders in South Korean City Could Lose Crypto Holdings

Authorities in the South Korean city of Gyeongju are investigating 511 individuals and 68 entities for possible crypto tax evasion. If found guilty the offenders could lose their crypto holdings.

The city, located in South Korea’s North Gyeongsang Province, is working with local crypto exchanges to spot potential tax evaders. This is in keeping with the newly launched Specific Financial Information Act. In fact, the act requires crypto exchanges to report suspicious or irregular activities. However, the Gyeongju authorities have opted to take the initiative.

The proactive move comes partly in response to a report by the South Korean National Tax Service (NTS). Based on the report, over 2000 crypto holders hid their assets in crypto to avoid paying tax. Not just that, but it seems like a number of crypto holders are failing to or under-reporting their crypto asset holdings.

Notably, as crypto adoption has grown so has the need to tighten crypto rules. To this end, South Korea introduced new crypto rules including a likely 20% crypto tax starting in 2022. This however has led to some exchanges exiting the Asian country.

Also, Gyeongju city is working with several local crypto exchanges to find tax evaders. Specifically, Bithumb and Upbit are aiding the city’s probe.

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