South Korean province recovers $4.6 million through cryptocurrency tracking system
Authorities in South Korea’s Gyeonggi Province are pioneering a groundbreaking method to combat tax evasion through cryptocurrency. This innovative approach has already produced remarkable results, with the state collecting a significant $4.6 million in unpaid taxes from a single group of offenders.
Rapid recovery through electronic management system
In a significant departure from traditional methods, Gyeonggi-do tax authorities We have adopted a sophisticated electronic custody system to quickly identify and seize cryptocurrency assets from tax evaders. This system revolutionized the state’s ability to enforce taxes by dramatically reducing the time required for such actions from six months to just 15 days.
Improved tracking enables surprising discoveries.
Gyeonggi-do authorities succeeded in detecting about 5,000 tax evaders holding virtual assets such as Bitcoin by tracking mobile phone numbers using resident registration numbers. In total, these individuals owe approximately $3.5 million in back taxes. Through the implementation of the new system, the state was able to recover a whopping $4.6 million in back taxes from more than 2,300 delinquent taxpayers in just one year.
Meanwhile, Regional Taxation Director Noh Seung-ho reaffirmed the region’s will to eradicate dishonest taxpayers and ensure fair taxation practices through innovative measures.
Political Landscape and Future Implications
Meanwhile, Korea’s political landscape is undergoing major changes, with the ruling People Power Party postponing taxation on cryptocurrency investment profits for two years. The proposal, seen as a potential campaign promise for the upcoming general election in April, reflects the evolving dynamics surrounding cryptocurrency regulation in the country.
Key points:
- Gyeonggi Province introduced an electronic management system to quickly process cryptocurrency tax execution, shortening the processing period from 6 months to 15 days.
- More than 5,000 tax evaders holding virtual assets were identified, and $4.6 million in back taxes was recovered in just one year.
Also read: