Crypto Assets Crackdown: Gyeonggi’s Tax Innovation

Gyeonggi Province in South Korea implements a cutting-edge system to tackle tax evasion involving crypto assets, retrieving $4.6M delinquents.

The province of Gyeonggi in South Korea employs an innovative new system to apprehend tax evaders who conceal their wealth in cryptocurrencies.

By far, the novel methodology has retrieved a cumulative sum of $4.6 million in tax arrears from a solitary cohort of delinquents.In the past, identifying and confiscating crypto assets from tax evaders was laborious and time-consuming, requiring a maximum of six months per case.

Streamlined Detection of Crypto Assets Owners

A local media outlet reported that a newly developed electronic management system has reduced that timeframe to fifteen days. The process begins with authorities entering into the system an inventory of delinquent taxpayers.

The system subsequently employs resident registration numbers to monitor mobile phone numbers, thereby substantially increasing the success rate in locating these users enrolled in cryptocurrency exchanges. 

As a result of this improved monitoring system, 5,910 tax evaders in possession of crypto assets such as Bitcoin have been identified; they collectively owe $3.5 million.

In a single year, authorities amassed an astounding $4.6 million in delinquent taxes from more than 2,300 of those individuals utilizing the streamlined system. 

The head of the Provincial Tax Justice Department, Noh Seung-ho, stated, “We will continue to aggressively prosecute dishonest thieves who claim they cannot afford to pay taxes while trading in crypto assets.”

He underscored their dedication to safeguarding truthful taxpayers and promoting equitable taxation using these pioneering measures. 

The province is augmenting its endeavors by fostering collaboration with cryptocurrency exchanges and investigating administrative repercussions against those that obstruct data inquiries, a jurisdiction vested in local governments. 

As previously documented, the governing People Power Party in South Korea is advocating for a two-year extension of the taxation on cryptocurrency investment gains.

The action is regarded as a possible campaign pledge in anticipation of the April general election.