Gyeonggi province in South Korea is taking decisive action against crypto tax evasion

Gyeonggi province in South Korea is taking decisive action against crypto tax evasion, using an advanced system to recover $4.6 million in unpaid taxes. Previously, identifying and seizing crypto assets from tax evaders took up to six months, but the province’s new electronic management system has cut this down to just 15 days.

By inputting delinquent taxpayers’ information and tracing their mobile phone numbers through resident registration numbers, the system can locate individuals registered on cryptocurrency exchanges. This approach has uncovered 5,910 tax evaders with crypto assets, resulting in the collection of $4.6 million from over 2,300 individuals in a year.

Noh Seung-ho, the head of the Provincial Tax Justice Department, emphasized the province’s dedication to fair taxation and pledged to pursue dishonest delinquents who claim they have no money to pay taxes while dealing in virtual assets. Gyeonggi province is strengthening collaboration with cryptocurrency exchanges to combat tax evasion and considering administrative measures against those who defy data requests.

These efforts come amid South Korea’s upcoming general election, with both governing and opposition parties advocating pro-crypto policies. This political stance is crucial in a country known for its active crypto trading scene. For instance, the ruling People Power Party has proposed exploring spot Bitcoin ETFs and delaying the introduction of taxes on cryptocurrency profits until 2027, reflecting a cautious approach to regulating the growing digital asset market.

Overall, these developments underscore South Korea’s proactive approach to integrating cryptocurrency into its financial system while ensuring compliance with tax laws.