New Report Suggests About 8,000 Korean Residents May Lose Digital Assets Over Tax Evasion Financial regulators in the
South Korean city of Cheongju are set to confiscate digital assets from local tax evaders.
According to a report on
Aug 22 by Yongap, a local news agency, the authorities of the city have set plans in motion
to clamp down on virtual asset holders in centralized exchanges who have not filed taxes.
The city has opened an inquiry
into seven crypto exchanges requesting the filing of certain information including the portfolio of 8,520 users who owe the government at least
1 million won ($750). Centralized exchanges
like Upbit and Bithumb were mentioned in the report
as the city explains the need to inquire about the holdings of residents and generate income for the government.
In the past few years,
local administrations have bemoaned the use of digital assets to conceal property and evade taxes. The trend of authorities has been to partner with centralized exchanges to get the holdings of traders and investors although some users devise other means like privacy coins and decentralized exchanges.
Specifically in South Korea, authorities have stressed the necessity
to clamp down on tax avoidance stating the citizens would be held accountable.
