A city in South Korea plans to launch its own virtual asset electronic entry system next month to enter cryptographic assets belonging to tax escapes.
According to the energy of the South Korean media Kyungjae, the city of Gwacheon has announced that it will launch “its own electronic system for entering virtual assets”. City regulators hope to use IT solutions from the wider province of Gyeonggi to identify cryptographic portfolios belonging to tax escapes living in the city in the near future.
Using the new entry system, Gwacheon City will mainly target 361 high income citizens who have been identified for not having paid more than 3 million won taxes, due to the average amount of around 18.8 billion won wons . According to the report, these people are suspected of hiding their wealth in crypto to avoid paying higher taxes.
In South Korea, the Crypto Tax Proposal has not yet been set up due to regulators who have agreed to postpone the cryptographic tax from 20% to 2027. Despite this delay, the South Korean government gave local tax agencies in certain regions the right to seize the crypto belonging to residents who have been examined for tax evasion.
Before seizing any active, officials of the city of Gwacheon promise to issue a warning to targeted citizens, encouraging them to pay the additional tax to avoid the seizure of their cryptographic assets. If citizens are unable to pay the amount of additional tax before the defined deadline, the authorities will move forward with the seizure of their cryptographic assets.
The process of collecting additional tax amounts will start in the first half of 2025 using the new computer solution.
Gwacheon City’s Tax Division, Kang Min-Ah, said that the deployment of his own electronic cryptography entry system is vital to ensure that the tax system is just for all citizens who conscientiously pay taxes .
“We will make a fair taxation thanks to strong responses to the obvious tax and actively block tax evasion by entering virtual assets,” said Kang.
Over the past five years, Gwacheon City would have entered around 300 million won virtual assets held by local taxes with high income. In 2024 alone, the authorities claimed to have seized 110 million wons of the value of digital assets.
