South Korea investigates more tax evasion

South Korea investigates more tax evasion related to cryptocurrencies

South Korea’s tax authority is targeting people who evade taxes using cryptocurrencies.

The National Tax Agency of South Korea is looking to crack down more on tax evasion and is now focusing on illegal activities related to the use of cryptocurrencies.

According to The Korea Herald, the tax agency has identified over 2,400 tax evaders Crypto Code who used cryptocurrencies to conceal assets worth over $32 million.

The agency said it targeted individuals with more than US$8,800 in tax debt and also discovered cash, bonds and other hidden assets.

The authority plans to investigate some of these individuals more deeply

The authority is working with crypto exchanges in the country in these investigations to obtain detailed records of customers’ transactions. Given the tightly regulated crypto space in South Korea, trading virtual currencies is only possible through real-name accounts and in conjunction with banks and other financial institutions.

The country’s exchanges could soon face penalties for failing to comply with laws related to customer identification. Major platforms such as Bithumb are currently expanding their anti-money laundering protocols.

The agency is therefore focusing more on tax evasion related to cryptocurrencies because there has been a surge in crypto trading activity in South Korea. As Cointelegraph previously reported, market activity on the country’s major exchanges briefly surpassed even activity on the South Korean stock market on Sunday.

According to the tax authority, the number of crypto investors in South Korea has increased by more than 300 percent in the past 12 months. This increase has also led to an eight-fold increase in the volume of virtual currency trading in the country.

The authority is investigating people who use cryptocurrencies to evade taxes as part of its crackdown on “anti-social tax evasion”.

Meanwhile, the new rule that a capital gains tax of 20 per cent will apply to profits from crypto trading above US$2,300 will come into effect on 1 January 2022.