The city government of Seoul, the capital of South Korea, has announced it is seizing 25 billion won ($ 22 million) in digital currency from individuals and business executives.
According to a report by The Korea Times, the confiscated cryptocurrency came from people identified as being detained by the city’s tax agency.
As part of the investigation, the Seoul National Tax Service identified 1,566 individuals and entities that did not pay taxes. The NTS Seoul office then proceeded to seize $ 22 million in digital currencies, which 676 of them had on three crypto exchanges.
Due to the mandatory trading of genuine cryptocurrencies in South Korea, government agencies may request customer trade data on cryptocurrency exchanges. Companies must also comply with strict reporting requirements for cryptocurrency transactions, or their executives must be jailed.
According to NTS, 676 individuals owed about $ 25 million in taxes, and that 118 of them had transferred more than $ 1 million to the state since the transfer.
In a statement to the Korea Times, the city government said the tax criminals urged the government not to liquidate the confiscated cryptocurrencies and added:
“We believe that taxpayers expect their cryptocurrency value to rise even more due to the recent rise in cryptocurrency prices, and have decided that they will earn more by paying taxes and exemptions from forfeiture.”
Bitcoin (BTC) accounted for 19%, the largest of the $ 22 million in cryptocurrencies seized by the government. Other tokens include DragonVein and XRP at 16% each, with Ether (ETH) accounting for 10% of all tokens lost.
As Cointelegraph previously reported, NTS has revealed plans to deepen investigations against individuals and companies looking to evade taxes by hiding their assets in cryptocurrencies. At the time, the IRS said it would target people with over $ 8,800 in tax cases.
Meanwhile, South Korea’s tax legislation on cryptocurrency taxes is set to take effect in January 2022. The tax system will introduce a 20% tax on capital gains from cryptocurrency trading exceeding $ 2,300.