In Gyeonggi province, South Korea, a digital system to track individuals evading taxes on cryptocurrency transactions was launched in 2023, leading to the identification of over 5,900 delinquents.
The Gyeonggi Provincial Tax Justice Department, the most populous region of South Korea, reported the results of using a new digital system to control crypto taxation. With its help, the department recovered 6.2 billion won ($4.6 million) from 2,390 delinquents in 2023, as the Yonhap publication reported.
The new system enables comparison of registration data from South Korean crypto exchanges with citizens’ phone numbers, facilitating the quick detection of accounts on crypto exchanges for analysis by the agency.
While similar activities were conducted manually before, data collection used to take up to six months. The new digital system reduced this period to just 15 days. It successfully located the accounts of 5,910 individuals, each owing over 3 million won ($2,200) in taxes.
Noh Seung-ho, Head of the Provincial Tax Justice Department, announced plans to strengthen cooperation with local crypto exchanges this year and to tighten administrative measures against platforms that refuse to cooperate. This development coincides with an initiative by South Korea’s Financial Intelligence Unit (KoFIU) to enhance control over the crypto sphere.
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