• The city of Cheongju, South Korea has asked seven cryptocurrency exchanges to investigate the assets of 8,520 suspected tax evaders.
• The local government claims that crypto is being used more often to hide wealth and plans to seize any cryptocurrency belonging to tax evaders.
• In 2021, South Korean authorities have seized cryptocurrencies for tax purposes and more than a thousand crypto wallets were confiscated by Argentine authorities in 2022.
Cheongju Takes Action Against Tax Evasion
The city of Cheongju in North Chungcheong province, South Korea has recently asked seven cryptocurrency exchanges to investigate the assets of 8,520 individuals suspected of dodging their taxes. These investigations are part of a larger effort by the local government to crack down on the use of cryptocurrency as a way to hide wealth from taxation.
Crypto Seizures by Authorities
In 2021, the South Korean government passed legislation which empowered tax authorities to confiscate cryptocurrencies held by tax evaders. This was followed by several confiscations which resulted in 68 million won (about $51,000) recovered back taxes from 17 people. More recently, Argentine tax authorities have also seized over a thousand crypto wallets owned by suspected tax evaders in 2022.
Impact on Crypto Investors
These developments could potentially have an impact on other crypto investors who are compliant with their taxes. While it is important for governments around the world to take measures against those attempting to evade taxes through digital currencies, it is also important that authorities do not unfairly target legitimate investors who comply with regulations and pay their fair share of taxes.
Growing Global Precedent
This move by Cheongju sets an example for other governments and cities around the world looking into ways of cracking down on digital currency usage for illegal activities such as money laundering or tax evasion. It will be interesting to see how this development affects other jurisdictions as they continue implementing strategies targeting illegal activities related to digital assets.
The efforts made by Cheongju’s local government demonstrate that there is an increasing focus on ensuring compliance with taxation laws when using cryptocurrencies – both at home and abroad – amongst individuals as well as institutions alike . This should serve as a reminder for all crypto users that they need to remain compliant with relevant laws and regulations wherever they operate so as not be caught out in similar situations in future