South Korean tax authorities have seized $22 million worth of cryptocurrencies from more than 1.500 tax evaders.
According to a post on Yonhap, the cryptocurrencies were confiscated directly from the offenders’ accounts at cryptocurrency exchanges. According to the report, tax officials discovered digital assets belonging to 1.566 individuals and heads of various companies – to which “top tax offenders” were charged – at three cryptocurrency exchanges. Authorities then seized $22 million worth of cryptocurrencies from 676 of the 1.566 aforementioned individuals in exchange for unpaid taxes.
118 people have already paid 1.26 billion won ($1.12 million) to get their confiscated cryptocurrencies back.
A press release issued by the local government on the subject states: “We are constantly receiving requests from taxpayers with pending cases, not to sell the confiscated cryptocurrencies as they intend to pay their due taxes“.
It seems that people affected by the seizure are likely to expect an increase in the value of the cryptocurrencies, so they consider it advantageous to pay the taxes that have been levied, instead of losing the seized digital data.
The news comes very quickly, following announcements made last month by the country’s tax authorities to “crack down on tax evasion through cryptocurrencies.”
The issue of taxation is one of the topics of much debate and concern among cryptocurrency holders. Many countries are also beginning to impose stricter controls on cryptocurrency holders, as has recently happened in Ukraine.
Investors in general, including cryptocurrency holders, reacted immediately with huge sales volumes, sending markets deep into the “red zone”. These show that if a new, stricter new law passes, it could put serious pressure on cryptocurrency holders on the issue of paying taxes.