The Tax Evasion Scandal
South Korean authorities expose thousands of tax evaders as they intensify the crackdown on tax dodging. This resulted in the confiscation of over 53 billion Korean won ($47 million) worth of crypto assets. Reports suggest that over twelve thousand people got charged for tax evasion.
The Largest “Cryptocurrency Seizure in Korean History”
The accused transformed the funds into Bitcoin, Ethereum, and other cryptocurrencies to hide the government’s taxes. Additionally, many of the wealthy Koreans found themselves caught performing tax evasions. Authorities tracked them down using their phone numbers, used to perform trade through local crypto exchanges.
This operation took months into making as a result became the largest “cryptocurrency seizure in Korean history”.
South Korea and Cryptocurrency
Due to the recent offense regarding tax evasion through crypto, the South Korean government looks to tighten its grip on the crypto market. South Korea is one of the most prominent leading digital asset trading markets in the world. Due to the increase in popularity in crypto investing, the Korean price of BTC hit the largest market cap. They hit $72,000, which is well over the global all-time high of $63,500.
Markets Coping With New Regulations
Many of the Korean exchanges have been struggling, due to the new regulations, to meet requirements. However, major institutions like Hana and K Bank, extended their support to help out smaller local exchanges.
The Korean Financial Services Commission, wants the digital asset platforms to intensify the screening procedure of crypto transactions. This causes them to delist “high-risk” coins to comply with the new regulations.
