Korean Authorities Seize Crypto From Local Investors With Unpaid Fines
Authorities in a South Korean province have seized crypto worth over $5 million from 1,661 investors who have more than $12 million unpaid fines in total. The seizure took place after an investigation of nearly 30,000 companies and individuals as well as their cryptocurrency holdings at four exchanges.
The province of Gyeonggi, the most populous province South Korea, announced that it had seized a total of 6.1 billion won ($5.14 million) in cryptocurrencies from 1,661 people who had a total of 14.4 billion unpaid fines.
According to the authorities from May to August 2020, they conducted an investigation of 29,656 companies and individuals who were delinquent on their payments of 1 million won or more under the category of “nontaxable income.” As part of the investigation the authorities looked into cryptocurrency holdings at four exchanges.
Nontaxable income in South Korea means income imposed and collected in accordance with the Administrative Procedures Act, including government fees and administrative fines.
As an example, a clothing wholesaler did not pay the enforcement fees of 20 million won imposed on him last year for illegally building an extension to his 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 imposed for illegally changing his business establishment to a warehouse in 2017.
The owner of a local real estate rental company, who had been 50 million won in arrears since 2018 for building illegal extensions and making land quality changes, owned 60 million won in cryptocurrency.
Kim Min-kyung, head of Gyeonggi’s taxation department said to local media
“It is the largest amount of cryptocurrency seizure in the country for nontaxable income delinquents.”
In June, the government of Gyeonggi Province reportedly seized cryptocurrencies worth more than 53 billion won from about 12,000 people who were delinquent on their tax payments.
