Summary
TLDR: South Korea’s Gyeonggi province implemented a system to combat crypto tax evasion, resulting in $4.7 million in arrears last year. The system tracks personal info of tax delinquents on crypto platforms and has streamlined the tracking process. This initiative is part of South Korea’s efforts to regulate the crypto market and curb illicit activities. The country is set to introduce stricter penalties for illicit gains in July 2024. The success of Gyeonggi’s system serves as a blueprint for other regions to protect the financial system and lawful taxpayers.
Key Points
1. South Korea’s Gyeonggi province implemented the ‘Arbitrator Virtual Asset Tracking Electronic Management System’ to combat crypto tax evasion, resulting in 6.2 billion won in arrears recovered last year.
2. The system can trace personal information like phone numbers for known tax delinquents and cross-reference this on crypto trading platforms, significantly streamlining the tracking and collection process.
3. South Korea is tightening regulations on the cryptocurrency industry, with increased scrutiny on suspicious transactions and the upcoming Virtual Asset User Protection Act introducing severe penalties for illicit gains exceeding $3.7 million.