A South Korean province has seized over $ 5 million worth of cryptocurrencies from 1,661 investors who were more than $ 12 million behind on their fines. The seizure was followed by an investigation of nearly 30,000 companies and individuals and their cryptocurrency holdings on four exchanges.
The Korean province confiscates cryptocurrencies for unpaid fines
South Korea’s Gyeonggi Province, the country’s most populous province, announced last week that it had seized 6.1 billion won ($ 5.14 million) in cryptocurrencies from 1,661 people, totaling 14.4 billion won with their fines were in arrears.
Authorities said that from May to August last year they conducted an investigation into 29,656 companies and individuals who were in arrears with payments of 1 million won or more in the non-taxable income category. This includes examining their cryptocurrency holdings on four exchanges.
Non-taxable income in South Korea refers to income that is collected and confiscated in accordance with the Administrative Procedure Act, such as: B. Government Fees and Administrative Fines.
For example, a clothing wholesaler did not pay the 20 million won enforcement fee charged last year for illegally building an extension to its factory. However, the investigation revealed that he had 500 million won in cryptocurrency.
The CEO of a frozen food company in Namyangju had 600 million won in cryptocurrency even after paying 40 million won in arrears, including the enforcement fee charged for illegally converting his business office into a warehouse in 2017.
The owner of a local real estate rental company, who has been 50 million won in arrears since 2018 for building illegal extensions and changing the quality of the land, owned 60 million won in cryptocurrency.
Kim Min-kyung, head of the Gyeonggi tax department, was quoted by local media as saying:
It is the largest amount of cryptocurrency seizures in the country for non-taxable income sinners.
While this seizure may be the largest in the non-taxable income category, the province has previously seized more cryptocurrencies. In June, the Gyeonggi Province government reportedly seized more than 53 billion won cryptocurrencies from about 12,000 people who were behind with their tax payments.
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