For failing to pay taxes since 2021, the South Korean government has confiscated 260B won in cryptocurrency.
Last year, the nation started seizing cryptocurrency to pay back unpaid taxes.
According to local news source mk.co.kr, the South Korean government has confiscated cryptocurrency worth more than 260 billion Korean won ($180 million) during the last two years owing to unpaid taxes. The nation’s lawmakers passed legislation allowing for the seizure of digital currency for unpaid taxes, and they started implementing it last year.
Person A, a resident of Seoul, had 1.43 billion won (approximately $101.6 million) in unpaid taxes, and the government confiscated his bitcoin exchange account. Twenty different currencies and tokens totaling 12.49 billion won (about $88.7 million) were included in the account, including 3.2 billion won (approximately $2.3 million) in Bitcoin (BTC) and 1.9 billion won ($1.3 million) in XRP.
Person A apparently paid the arrears following the seizure and asked to have the sale of the confiscated property halted. South Korean legislation permits authorities to sell confiscated cryptocurrency at market value if tax arrears are not paid.
The market for digital currencies in South Korea, which reached $45.9 billion last year, is one of the largest in the world. Yoon Suk-Yeol, a proponent of cryptocurrencies, won the country’s presidential elections in March, and immediately afterward, a currency used to manufacture his signature as a nonfungible token (NFT) saw a 60% increase. Additionally, each of the front-runners published NFTs to support their respective campaigns.
In South Korea’s cryptocurrency industry, Yoon has vowed to “overhaul restrictions that are distant from reality and unfair.” One of the policies, which went into effect in July, delays for two years a 20% tax on earnings from bitcoin transactions that exceed 2.5 million won ($177,550).