South Korea to Tighten Rules on Cryptocurrency Confiscation

South Korean lawmakers proposed confiscating cryptocurrencies from digital wallets of tax evaders. Reuters reports, citing the country’s Ministry of Finance.

The initiative aims to strengthen oversight of cryptocurrency markets to combat money laundering and other financial crimes.

Current rules hinder authorities from confiscating digital assets held in personal wallets. The initiative would remove this barrier and boost tax revenues to fund increased social spending.

According to the agency, the Ministry of Finance will submit a package of amendments to Parliament by September 3. If approved, they would take effect in 2022.

Earlier, South Korean authorities obliged citizens to disclose information about accounts on overseas bitcoin exchanges.

From 2022, the country will also introduce a 20% tax on profits from cryptocurrency trading for amounts exceeding 2.5 million won (roughly $2,230).

In June, the government of Gyeonggi Province seized assets worth $47 million in Bitcoin, Ethereum and other cryptocurrencies from 12,000 people who dodged taxes.

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