South Korean authorities of the city of Paju have decided to seize and sell the crypto assets of those citizens who have been getting into tax evasion techniques.
According to local media reports, authorities in the Gyeonggi Province of South Korea, which includes the city of Paju, have declared their intention to confiscate and liquidate the cryptocurrency holdings of residents who have not paid their taxes.
The decision comes against the backdrop of South Korea keeping a strict watch on the crypto sector to curb illegal activities. The cryptocurrency industry in South Korea is also one of the largest in the world, with more than half of the country’s young adolescents showing interest in the realm of digital assets and cryptocurrencies.
Crypto Becomes South Korea’s Tax Evasion Method
The main reason for the decision is crypto’s hold on South Korea’s illegal framework. According to the official announcement, people in the nation were purposefully turning money into digital assets in order to evade paying taxes, even though they had the money to do so.
Paju city officials have written letters to 17 individuals with outstanding taxes totaling 124 million Korean won, or around $88,600. The authorities have also stated that if the debts are not paid by the end of November, the city has threatened to seize and sell the cryptocurrency assets that these taxpayers have on exchanges.
South Korea Sees Rise In Crypto Illegal Activities
South Korea is currently grappling with a rise in illegal money flow due to crypto. The nation has tried to keep a strict watch on these activities, however crypto scams, illegal activities, and frauds have been rising in the nation.
Just recently, 215 people have been taken into custody by South Korean authorities in connection with a recent $228.4 million cryptocurrency investment scam. This cryptocurrency theft has been regarded as one of the largest to have occurred in the country.
Not long ago, the South Korean Financial Supervisory Service (FSS) made the decision to increase its market monitoring activities in reaction to the post-US election turbulence.
Additionally, the nation also tried to keep a close eye on cross-border Bitcoin transactions. The measure was conducted in an effort to prevent tax evasion and illicit foreign exchange. The nation’s authorities have stated that cross-border Bitcoin transactions have become a “blind spot” for customs and tax authorities, which is why this new rule aims to prevent illicit financial activities.