South Korea’s Gyeonggi Province has made significant strides in reclaiming funds from crypto tax evaders, amounting to $4.6 million. This substantial sum was retrieved through a pioneering digital tracking system. This marks a revolutionary advancement in the country’s tax recovery efforts.
Efficient Tracing Process
The implementation of the digital tracking system streamlined the process of identifying and collecting crypto tax evaders. Utilizing the local registration numbers of violators, commonly known as delinquents in South Korea, authorities were able to uncover associated mobile numbers. These mobile numbers were then leveraged to trace linked accounts across various crypto exchanges. This innovative approach drastically reduced the time required for information retrieval from crypto exchanges. This has been condensing it from six months to a mere 15 days.
The tracing efforts yielded fruitful results, identifying 5,910 individuals with significant outstanding sums, each exceeding $2262. Impressively, the $4.6 million was recovered from only 2,390 individuals within the past year.
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Commitment to Enforcement
Noh Seung-ho, the head of the Provincial Tax Justice Department, reiterated the province’s unwavering commitment to robust collection actions against tax evaders. He emphasized the determination to pursue unscrupulous delinquents who evade taxes. It also includes those who engage in virtual asset trading, underscoring the seriousness of tax enforcement efforts.
While South Korea continues to grapple with the regulation of crypto earnings and investigates firms for tax evasion, the country has encountered delays in implementing comprehensive tax policies.
South Korea’s Top Crypto Custodian Sees Tripled Deposits in H2 2023
In parallel developments, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has witnessed a significant surge in the value of crypto assets under its custody. In the latter half of 2023, the value of assets under KODA’s custody skyrocketed by an impressive 248%. It further reached approximately 8 trillion Korean won ($6 billion) by year-end.
KODA, a collaborative venture involving major entities such as KB Bank, Hashed, and Haechi Labs, attributed this surge to the escalating market interest in cryptocurrencies. Despite regulatory constraints on institutional investments in crypto exchanges, KODA’s regulated custody service has provided a secure avenue for managing crypto assets.
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Additionally, the firm’s market dominance in the local crypto asset custody sector has reached an impressive 80%. This serves around 50 corporate clients and manages over 200 wallets. This exponential growth underscores the rising institutional interest in cryptocurrencies and the increasing demand for reliable custody solutions in South Korea’s evolving crypto landscape.