South Korean Tax Service confiscated $ 22 million worth of cryptocurrencies from Seoul traders

Seoul tax authorities have confiscated 25 billion won ($ 22 million) of cryptocurrencies from individuals and companies that evaded taxes.

As part of the investigation, the Seoul branch of the South Korean Internal Revenue Service (NTS) identified 1,566 individuals and company executives with unpaid taxes. The tax authorities confiscated digital assets worth $ 22 million from them. Bitcoin accounted for the largest share of confiscated digital assets – 19%. Cryptocurrencies DVC and XRP accounted for 16% each, and a tenth of the seized cryptoassets was ETH.

During the tax audit, NTS revealed that 676 of the found violators traded the indicated digital currencies on three cryptocurrency exchanges, owing the government about $ 25 million in taxes. 118 people have already paid the state more than $ 1 million. According to the Seoul authorities, traders urged the tax authorities not to destroy the confiscated cryptocurrencies. Users expect their value to rise, allowing them to pay late taxes and even make a profit.

According to South Korean law, trading in cryptocurrencies in the country is only permitted when using real name on accounts that must be linked to a bank account. In addition, government agencies can request cryptocurrency exchanges for transaction data of their clients. For non-compliance with anti-money laundering (AML) rules, marketplaces can receive serious fines.

Meanwhile, South Korea has already approved a 20% income tax on cryptocurrencies if a trader’s annual profit from digital asset trading exceeds 2.5 million won. This law should come into force from January 2023.