South Korean authorities seize $47 million worth of cryptocurrencies from tax evaders

Officials in South Korea's Gyeonggi province held one of the largest tax seizures in the country. According to the Financial Times, the months-long investigation led to the seizure of $47 million worth of Ethereum, Bitcoin and other cryptocurrencies. Officials have described the incident as "the largest cryptocurrency back tax seizure in Korean history". Gyeonggi is South Korea's most populous province and includes the capital, Seoul. Authorities confiscated the money of 12,000 tax evaders by linking their activities on cryptocurrency exchanges to their phone numbers. Because many exchanges do not collect the official identities of account holders, researchers had to manually parse this data. It is unclear which exchanges are involved in the investigation. The absence of South Korea's official KYC identity has been one of the main drivers behind the regulator's latest crackdown on South Korea. In March 2020, the National Assembly of South Korea passed a law requiring local exchanges to comply with the Financial Action Task Force (FATF) guidelines for combating money laundering and terrorism financing. Crypto companies, especially exchanges, must also obtain approval from the Financial Services Commission (FSC) and the Korea Internet and Security Agency before September 24, 2021. This law includes new requirements to identify users and clarify which entities can be listed. If a project has a low token volume, has idle development, or does not have a clear communication channel with the team, it will be delisted. South Korean Finance Minister: 'Taxing crypto next year is inevitable' Upbit, one of South Korea's 'big four' crypto exchanges, has already started issuing several coins. The platform was also one of the first to obtain a legal license to continue operating in South Korea. Adaptation was difficult in smaller exchanges. This is because platforms have to pay.

Join the Discussion

  • BrokerEUR/USD
    IG 0.6pips (fixed) margin: 3.33%
    SpreadEX 0.6pips (variable) margin: 3.33%
  • Back to top