Jeju City uses AI and exchange data to seize $14M in crypto tax from evaders, highlighting South Korea’s crackdown on hidden digital assets.
Jeju City, the capital of South Korea’s Jeju Island, has launched a major crackdown on tax evaders hiding wealth in cryptocurrencies. Tax officials recently completed a large-scale investigation to uncover hidden digital assets. The campaign was aimed at collecting overdue taxes, as reported by Newsis. The action demonstrates the increased attention given by South Korea to crypto market control.
Jeju City Seizes $14M in Crypto Tax Evasion Crackdown
The probe targeted 2,962 residents who owed 19.7 billion won ($14.2 million) in unpaid taxes. The local taxes that these people had unpaid debts on included local taxes such as acquisition tax, and over 1 million won ($719). To discover undeclared assets, the authorities reviewed the information of four large crypto exchanges: Bithumb Korea, Doo Tree (Upbit), Coinone, and Korbit. This enabled them to trace cryptocurrency assets belonging to tax delinquents.
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Because of this, 49 people were discovered in the city with crypto assets totaling 230 million won ($165,000). Jeju City, therefore, declared third-party debtors. It is a legal procedure through which authorities can freeze and confiscate assets. In case the individuals do not pay their tax bills, the city will sell the confiscated cryptocurrencies to get the outstanding payments.
In addition, Jeju City applied the advanced technology to assist in the investigation. Tax officials used the artificial intelligence (AI) tools to examine the data and identify hidden crypto assets. Hwang Tae-hoon, the taxation head of the city, stressed the significance of such endeavors. According to him, they will reinforce the delinquency response by making use of new resources like virtual resources, to comprehensively unearth hidden resources. He further stated that use of AI-based analysis would assist in monitoring evaders of high-value tax, increase tax collection, and encourage taxpayers to pay tax honestly.
AI Technology Fuels South Korea’s Fight Against Crypto Tax Fraud
While this crackdown is part of a broader trend in South Korea. Since 2021, the laws have enabled tax authorities to confiscate the crypto of delinquents. For example, the Gangnam District of Seoul recovered over $144,000 in crypto used for tax evasion this year. In the same way, South Korean authorities confiscated $180 million in cryptocurrencies in 2021-2022 throughout the country. Crypto assets have also been targeted in other cities such as Paju to bring about tax compliance.
Moreover, the activities of Jeju demonstrate the problems of controlling digital currencies. The use of cryptocurrencies acts as a form of concealing wealth, yet AI and exchange information increases the difficulty of evading tax. The fact that the city has been able to detect 49 tax delinquents by use of technology reflects the transformation in the tax enforcement.
To sum up, the crypto seizure operation in Jeju City is a robust measure against tax evasion. Officials are clamping down on concealed assets through the aid of AI and exchange data. It is not just the recovery of millions of unpaid taxes, but also a clear message: cryptocurrencies are not the place where tax evaders can hide. Tax evaders are under growing pressure as South Korea tightens its noose around crypto.
The post South Korean Island Targets Crypto Tax Evaders appeared first on Live Bitcoin News.
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