South Korea Forms Special Division To Evade Crypto Money Laundering.
2021-03-15 | Robin Williams
The National Tax Service of
South Korea is increasing its efforts to combat money
evasion and is now
that specialize in the utilization of crypto assets for such illegal activities.
In line with The Korea Herald, the tax agency has
identified over 2,400 tax evaders who used crypto assets
to cover assets worth over $32 Mln from
the govt.
The NTS added that it targeted users with
over $8.8k USD in tax defaults while also recovering cash, bonds, and other hidden assets.
Indeed, the agency reportedly plans to conduct a deeper probe of
a number of the individuals caught
within the evasion scheme.
As
a part of its investigations, the NTS liaised with cryptocurrency exchanges
within the country
to get detailed user trading reports. Given the tightly regulated cryptocurrency space in
South Korea, virtual currency trading
is merely possible via real-name accounts tied to banks and other financial institutions.
Indeed, exchanges
within the country may soon begin to face stiff penalties for non-compliance with user identification laws. Leading platforms like Bithumb are already upscaling their AML [Anti-Money Laundering] protocols.
The agencies that
specialize in money laundering techniques via crypto assets come amid reports of a surge in South Korea’s cryptocurrency trading activity. As reported earlier, market activity on the country’s leading exchanges briefly
exceeded the figures from the South Korean
stock exchange earlier on Sunday.
In line with the NTS,
the number of
cryptocurrency investors in
South Korea increased by over 300%
within the past 12 months. This rise has also resulted in an 8x times hike within the country’s virtual currency trading volume.
For the NTS, the investigation into users using crypto assets to evade taxes
is a component of its “anti-social tax dodging” crackdown.
Moreover, the govt’s planned 20% capital gains tax on crypto trading profits exceeding $2,300 USD will
inherit effect on 1
st Jan., next year in 2021.
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