Korea to Tighten Crackdown on Tax Evasion by Crypto Investors
Main page News, Taxation, South Korea, Crypto Market, Regulations

South Korea wants to put more pressure on cryptocurrency investors who avoid taxation, Reuters reports. According to South Korea's Minister of Economy and Finance, Hong Nam-ki, the government wants to allow tax watchdogs to seize cryptocurrencies held by tax dodgers starting 2022.

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Currently, given the uncertainty around the regulation of the cryptocurrency market, it is difficult for authorities to confiscate cryptocurrencies stored in digital wallets. The ministry plans to submit the tax proposal by September 3 as it needs approval from lawmakers to make it enforceable.

Cryptocurrency Exchanges Might Sue Korean Government Over Regulatory Framework: Report

The move is part of South Korea's broader campaign against unregulated turnover of cryptocurrencies. As iHodl earlier reported, South Korean financial institutions will be required to classify cryptocurrency exchanges as high-risk clients and subject to strengthened monitoring. Korean banks will deny services to clients that do not want to comply with ID verification procedures, and report suspicious transactions to the Korea Financial Intelligence Unit (KoFIU).

The new guidelines will allegedly affect nearly 60 cryptocurrency exchanges in South Korea. Cryptocurrency exchanges will also have to submit a request for a license by September 24 to KoFIU.

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