Legal

South Korea Forms Special Division To Evade Crypto Money Laundering.

The National Tax Service of South Korea is increasing its efforts to combat money evasion and is now that specialize in the utilization of crypto assets for such illegal activities.

In line with The Korea Herald, the tax agency has identified over 2,400 tax evaders who used crypto assets to cover assets worth over $32 Mln from the govt.

The NTS added that it targeted users with over $8.8k USD in tax defaults while also recovering cash, bonds, and other hidden assets.

Indeed, the agency reportedly plans to conduct a deeper probe of a number of the individuals caught within the evasion scheme.

As a part of its investigations, the NTS liaised with cryptocurrency exchanges within the country to get detailed user trading reports. Given the tightly regulated cryptocurrency space in South Korea, virtual currency trading is merely possible via real-name accounts tied to banks and other financial institutions.

Indeed, exchanges within the country may soon begin to face stiff penalties for non-compliance with user identification laws. Leading platforms like Bithumb are already upscaling their AML [Anti-Money Laundering] protocols.

The agencies that specialize in money laundering techniques via crypto assets come amid reports of a surge in South Korea’s cryptocurrency trading activity. As reported earlier, market activity on the country’s leading exchanges briefly exceeded the figures from the South Korean stock exchange earlier on Sunday.

In line with the NTS, the number of cryptocurrency investors in South Korea increased by over 300% within the past 12 months. This rise has also resulted in an 8x times hike within the country’s virtual currency trading volume.

For the NTS, the investigation into users using crypto assets to evade taxes is a component of its “anti-social tax dodging” crackdown.

Moreover, the govt’s planned 20% capital gains tax on crypto trading profits exceeding $2,300 USD will inherit effect on 1st Jan., next year in 2021.

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