According to regional news outlet mk.co.kr, the South Korean government has confiscated More than 260 billion Korean won ($180 million) worth of cryptocurrencies have been lost due to tax arrears over the past two years. The country’s politicians created rules allowing the seizure of digital currencies for tax offenses and began enforcing them last year.
A person living in Seoul, called “Person A”, owed 1.43 billion in taxes (about $101.6 million) and had his cryptocurrency exchange account confiscated by authorities. The account held digital assets of 12.49 billion won (about $88.7 million) spread across 20 coins and tokens, including 3.2 billion won (about $2.3 million) in bitcoin (BTC) and 1.9 billion won (about $1.3 million) in XRP.
After the seizure, Person A allegedly paid the dues and requested to stop the sale of the confiscated property. South Korean law allows authorities to sell confiscated cryptocurrencies at market value if tax dues are not paid.
South Korea is one of the most popular countries in the world for crypto activity, with its digital currency market rising to $45.9 billion last year. In March, crypto-friendly Yoon Suk-yol won the country’s presidential election, and a coin that used his signature as a non-fungible token (NFT) soared 60% shortly thereafter. In addition, both the leading candidates issued campaign-related NFTs for electoral support.
Yoon has promised to overhaul “rules that are far from reality and unfair” in South Korea’s crypto sector. One of the measures, dating back to July, involves deferring a 20% tax on income generated from cryptocurrency transactions of more than 2.5 million ($177,550) for two years.
Credit : cointelegraph.com