According to local media sources, crypto assets confiscated from alleged tax evaders in South Korea in 2021 and 2022 totaled close to 260 billion Korean won (US$184.3 million). The most cryptocurrency ever taken from a non-compliant taxpayer was nearly 12.5 billion won or USD 8.87 million. The person held 20 cryptocurrencies, including Ripple and Bitcoin. Tax Authorities of South Korea After establishing the plan in 2020, the South Korean tax authorities began seizing cryptocurrency to recover unpaid taxes last year. Based on information acquired from exchanges, the administration seizes a tax defaulter’s account or crypto holdings. Non-payment of the tax bill results in digital assets liquidation at market value. Kim Sang-hoon, a politician from South Korea’s right-wing People Power Party and a National Assembly’s Strategy and Finance Committee member, collected the information from statistics made available by the finance ministry and other governmental organizations. Tax on Crypto Gains Postponed to 2025 The South Korean government has postponed a 20 percent tax on all cryptocurrency revenues until 2025. The 5 million crypto investors in South Korea were on edge, citing the need for time to prepare investor safety measures and a stagnant market environment. The initial proposal to impose an extra 20% tax on crypto gains surpassing KRW 2.5 million ($1,900) in a calendar year has not changed. The current, generally unfavorabl...
