The South Korean tax authorities are hunting people for hiding their assets in cryptocurrency to avoid paying taxes.
South Korean Tax Authorities Increase fight against Crypto Tax Evasion
South Korea National Tax Service has stepped up its fight against tax evasion and is currently working on using cryptocurrency for such illegal activities.
According to the Korea Herald, tax authorities have identified more than 2,400 tax evaders who have used cryptocurrency to hide more than 36.6 billion won ($32 million) in assets from the government.
NTS is aimed at individuals who owe more than 10 million won ($8,800) in taxes while also being able to recover cash, bonds, and other hidden assets.
The agency reportedly plans to conduct more in-depth investigations into certain individuals involved in tax evasion programs.
As part of the investigation, NTS stayed in touch with the country’s crypto exchanges for detailed reports on customer transactions. Given the strict regulation of the cryptocurrency space in South Korea, transactions in virtual currencies can only be carried out through accounts with real names that are tied to banks and other financial institutions.
The Country Exchanges Updating Anti-Money Laundering Protocols
Indeed, the country’s exchanges could soon face severe penalties for failing to comply with customer identification laws. Big platforms like Bithumb are already updating their anti-money laundering protocols.
There have been reports of a surge in crypto trading activity in South Korea and the agency is championing cryptocurrency tax evasion. As previously reported, market activity on the major South Korean stock exchanges briefly exceeded the South Korean stock market data on Sunday.
According to NTS, the number of cryptocurrency investors in South Korea has increased by more than 300% in the past 12 months. This growth has also resulted in an eight-fold increase in the volume of trade in virtual currencies in the country.
For NTS, investigating people who use cryptocurrency for tax evasion is part of the “Anti-Social Tax Evasion” campaign.
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