South Korean City Has Seized Crypto from 200+ Residents Over Unpaid Tax Bills
Cheongju, the capital and largest metropolis of South Korea’s North Chungcheong Province, says it has seized crypto from 203 residents since 2021.
The South Korean information company Yonhap reported that metropolis authorities say the residents all didn’t pay their native taxes.
The metropolis additionally introduced that it has opened a buying and selling account on an unnamed home crypto exchange, changing into one of many first authorities our bodies to take action.
Seized Crypto: We Will Sell Coins Directly, Says City
Cheongju’s transfer follows a latest ruling from the regulatory Financial Services Commission (FSC). The FSC is step by step opening the door to company crypto funding, starting by permitting authorities organs and charitable organizations to purchase and promote cash.
The metropolis says that if residents fail to pay their excellent tax payments, it can use its powers to oblige crypto exchanges at hand over knowledge pertaining to those residents’ crypto wallets.
Local tax our bodies have the facility to freeze cash belonging to tax evaders. But the brand new pockets will let tax officers forcibly switch crypto to town’s pockets.
From there, metropolis officers mentioned, it will likely be “bought straight.” The metropolis will then switch the fiat to its treasury.
The metropolis says that its newest crackdown on tax evaders has seen tax officers seize cash from 161 people who collectively owe town round 1.5 billion gained ($1.1 million).
‘No More Crypto Tax Havens’
Previously, town had to make use of strategies similar to transaction suspension orders to grab tokens. But the success of the crackdowns was “restricted resulting from Cheongju’s lack of a method to transform them into money,” Yonhap wrote.
The metropolis mentioned it can advise tax evaders to promote their cryptoassets to allow them to pay their excellent payments.
But, if needed, town mentioned, it can “take steps to liquidate the funds.” A Cheongju metropolis official mentioned:
“We will do our utmost to gather the cash owed to town. We will be sure that the crypto sector now not offers a tax haven for delinquents.”
Last month, the district of Gangnam, in Seoul, introduced it was stepping up its personal crypto confiscation program for tax evaders.
The district, which is residence to a lot of the nation’s greatest crypto corporations, has seized 340 million won ($244,480) since the end of last year.
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