South Korea Seizes US$184 mln in Crypto Towards Unpaid Tax: Report
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Tax Authorities of South Korea
After establishing the plan in 2020, the South Korean tax authorities began seizing cryptocurrency to recover unpaid taxes last year. Based on information acquired from exchanges, the administration seizes a tax defaulter's account or crypto holdings. Non-payment of the tax bill results in digital assets liquidation at market value.
Kim Sang-hoon, a politician from South Korea's right-wing People Power Party and a National Assembly's Strategy and Finance Committee member, collected the information from statistics made available by the finance ministry and other governmental organizations.
Tax on Crypto Gains Postponed to 2025
The South Korean government has postponed a 20 percent tax on all cryptocurrency revenues until 2025. The 5 million crypto investors in South Korea were on edge, citing the need for time to prepare investor safety measures and a stagnant market environment. The initial proposal to impose an extra 20% tax on crypto gains surpassing KRW 2.5 million ($1,900) in a calendar year has not changed. The current, generally unfavorable outlook for the world market was cited as one cause of the delay.