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South Korea is ramping up its tax collection efforts by targeting those that might have used crypto to evade taxes. The nation’s tax agency has listed more than two thousand individuals suspected of using popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Ripple (XRP) to hide their assets.
South Korea’s National Tax Service (NTS) has identified 2,416 individuals who used cryptos to hide their assets and bypass paying taxes, according to the Korea Herald. The tax agency was able to come up with the names of the suspected tax evaders based on data collected from various crypto exchanges.
The total amount of wealth concealed by the use of cryptos is estimated at 36.6 billion won or around $32.24 million. Officials revealed that Bitcoin (BTC), Ether (ETH), ripple (XRP), and other cryptos were used in an attempt to avoid scrutiny by tax authorities.
The NTS probe mainly targeted people with over 10 million won (around $8,800) in delinquent taxes. Of the 2,416 identified individuals, the tax agency launched further investigations on 222 people for allegedly evaded tax payments.
“The recent probe was a part of our ongoing efforts to strengthen a crackdown on anti-social tax dodging,” the NTS said. “We will capture highly intellectualized (tax evading) cases and quickly redeem their concealed properties.”
The agency was able to identify the individuals by digging into their crypto trading reports and banking information, according to Bitcoin.com. These reports are required under South Korea’s crypto regulations.
Crypto exchanges in the country are required to use their client’s real name and partner with a financial institution to provide their services. South Korean banks are also required to conduct customer due diligence and submit reports to the Korea Financial Intelligence Unit (KOFIU).
In February, the government enacted amendments to its tax rules to include the imposition of a 20 percent tax on crypto trading profits. The new rule will start to take effect by 2022.
