The Seoul government seized digital currency worth 25 billion won ($22 million) from private individuals and company executives who evaded taxes. The Korea Times reports.
During the investigation, the National Tax Service identified 1,566 individuals and company executives in the capital with tax arrears. Subsequently, officials confiscated cryptocurrency from 676 citizens, with total back taxes amounting to about $25 million.
Of the seized funds, 19% were Bitcoin, 16% DragonVein and XRP, and 10% Ethereum.
After the asset seizures, 118 violators paid more than $1 million in taxes. They also asked the government not to liquidate the seized cryptocurrency.
Taxpayers expect further growth in cryptocurrencies and believe it will be more advantageous to settle the debt, the city authorities said.
From 1 January 2022, Korea will introduce a 20% tax on profits from trading cryptocurrencies above 2.5 million won (about $2,230).
Similar rules will apply to inheritance or gifts of digital assets.
By September 2021, South Korea’s cryptocurrency exchanges were required to complete KYC procedures under the Special Payments Act. It also envisages a ban on anonymous cryptocurrencies.
Follow ForkLog news on Facebook.