South Korea unveils crypto’s use in tax evasion as the country implements a 20% tax proposal.

  • South Korea’s NTS finds that cryptocurrencies are used for tax evasion and dodging tax liabilities.

  • The NTS filed a lawsuit against an individual who illegally transferred cryptocurrencies.

  • The country implements a 20% crypto taxation for gains above 50 million Korean won.

South Korea is cracking down on those using cryptocurrencies to evade taxes as the country prepares to implement a new 20% tax on crypto gains. This move by the National Tax Service (NTS) underscores the government’s commitment to regulating the digital asset space while ensuring tax compliance.

The NTS has been monitoring the crypto holdings and activities of major tax debtors to uncover illegal practices. In one investigation, the agency found that an individual who purchased 20 different cryptocurrencies with funds from a property sale attempted to hide these assets by transferring them to multiple wallets. The NTS tracked these transactions and traced them to the individual’s mother and cousin, leading to a lawsuit to invalidate the transfers.

South Korea’s Evolving Crypto Tax Framework

Meanwhile, South Korea’s Democratic Party has proposed a 20% tax on crypto gains exceeding 50…

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