South Korean Authorities Collect $4.6 Million in Cryptocurrency Taxes

The tax department of South Korea’s Gyeonggi Province has announced the collection of $4.6 million in taxes from cryptocurrency income evaders in 2023, according to local media.

Previously, the process was delayed for months due to the need to send official requests to trading platforms for each user. Now, authorities have utilized a new digital tracking system.

Using the registration numbers of violators, they identified their mobile phones and subsequently linked them to accounts on bitcoin exchanges.

Within 15 days, 5910 individuals were identified, each owing more than $2000 in taxes from cryptocurrency transactions. Of these, $4.6 million was collected from 2390 individuals.

The provincial authorities plan to further improve the system of information exchange with crypto exchanges, implementing additional administrative penalties for refusal to cooperate.

In July, the South Korean government launched a unit to combat cryptocurrency crimes, including tax evasion, unauthorized transfers, and money laundering.

From January 2024, the FCS has mandated firms to disclose data on their holdings of digital assets.