South Korean Tax Agency Identifies Over 2,400 Evaders Who Used Cryptocurrencies to Bypass Taxation – Regulation Bitcoin News


South Korean Tax Agency Identifies Over 2,400 Evaders Who Used Cryptocurrencies to Bypass Taxation

South Korean authorities seem to be focusing on strengthening measures to combat tax evasion across the nation. The country’s tax watchdog profiled thousands of evaders that relied on cryptocurrencies to hide assets worth billions of Korean won.

Evaders Hid a Total of $32.24 Million in Assets

Per the Korea Herald, the National Tax Service of South Korea (NTS) identified 2,416 individuals who reportedly hid their assets in cryptos to bypass taxation. The agency stated that evaders used bitcoin (BTC), ethereum (ETH), ripple (XRP), among other cryptos, to avoid being scrutinized by the tax authorities.

According to the officials, assets involved in the tax evasion account for a total of 36.6 billion won ($32.24 million). Also, the NTS clarified they mainly targeted people owing over 10 million won ($8,800) in taxes.

Still, the tax authorities managed to recover hidden assets in cash and bonds. At the same time, they launched an investigation against 222 of those who allegedly evaded tax payments. The agency issued the following statement:

The recent probe was a part of our ongoing efforts to strengthen a crackdown on anti-social tax dodging. We will capture highly intellectualized (tax-evading) cases and quickly redeem their concealed properties.

Domestic Crypto Exchanges Collaborated With the NTS

The NTS stated they relied on domestic crypto exchanges to gather personal data from the alleged tax evaders. It included individuals’ trading reports and banking information, which fully complies with the strict regulations that currently rule the crypto sphere in South Korea.

Under the law, South Korean crypto exchanges must use the real-name system by partnering with a financial institution to provide this service.

Banks will be obligated to conduct customer due diligence on the crypto businesses they deal with, ensuring proper reporting to the Korea Financial Intelligence Unit (KOFIU).’s newsdesk reported that the South Korean government issued an amendment to introduce a 20% tax on cryptocurrency trading profits.

Although it was enacted in February, the legislative clarified early this year that the new rule will start applying in 2022.

Tags in this story
Asia, Crypto tax, South Korea, South Korea Bitcoin, south korea cryptocurrency, South Korean Won, tax evaders, tax evasion

What do you think about the recent crackdown on tax evaders in South Korea? Let us know in the comments section below.

Felipe Erazo

Born in Colombia, Felipe earned a degree in journalism at the University of Chile with the highest honor in the overall ranking and holds a Bachelor of Arts in Social Communication. He is a writer with more than nine years of experience, first in the Forex field and later in the crypto industry as an analyst/news junkie. Among his interest topics include human rights, decentralization, financial markets, geopolitics, sports, and new technologies. An inveterate traveler, and always attracted to a good plate of food.

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