Cheongju, South Korea is cracking down on crypto tax evasion, targeting digital asset holders who have not filed taxes.
In Cheongju, a city in South Korea, authorities are taking a hard stand against tax evaders who are using digital assets like crypto. They’re getting ready to take away digital assets from people who haven’t paid their taxes. The city is looking at seven crypto exchanges, trying to find information on 8,520 users who owe the government money. This money is at least 1 million won ($750) per user.
The city is talking to well-known exchanges like Upbit and Bithumb to learn more about what people own. The goal is to find the money for the government. This move shows how worried local officials are about people hiding money and not paying taxes through digital assets.
In the past, the government has worked with exchanges to understand who owns what. They want to make sure people pay what they owe. Last year, Cheongju’s authorities asked for information on 16,000 digital asset investors who might be avoiding taxes. They found 17 people who were hiding money and collected up to 68 million won, about $51,000.
But the government isn’t the only one getting smarter. Some users are trying to hide their money using different methods, like privacy coins and decentralized exchanges.
South Korea’s Focus on Tax Avoidance
In South Korea, the government is clear that it wants to stop tax avoidance. People will be held responsible if they don’t follow the rules. Other countries are doing the same thing. They are making new laws to make sure people who invest in virtual assets pay taxes. Countries like Nigeria and Australia have been clear about what they expect from people who own digital assets.
Some people think this is good because it helps the industry. Others disagree. They say digital assets shouldn’t be taxed like other things because they’re different. They think the taxes are too high and unfair.
Even with these new rules, some people still try to avoid paying taxes. They use privacy coins like Monero to hide who they are and what they’re doing. This has made the government work even harder to make sure people pay what they owe.
In South Korea, authorities have taken a lot of money from people who didn’t pay their taxes. They have taken about 260 billion won ($180 billion) in the last few years. In 2021, they changed the law to make it easier to take digital assets from people who don’t pay their taxes.
South Korea isn’t the only country trying to make sure people pay their taxes on digital assets. The United States and Argentina have done similar things. They’ve taken money from people who didn’t pay their taxes too. After all, South Korea remains the one of the countries with the highest number of crypto users.