Cheongju Unveils Upbit’s Compliance in Tracking Tax-Evading Users’ Crypto

Key Points:

• Cheongju enlists 7 exchanges, including Upbit and Bithumb, to probe 8,520 users’ crypto holdings.
• Focus on tax debts over 1 million won, ensuring compliance in crypto tax landscape.

Cheongju City has taken a pioneering step by announcing its initiative to seize virtual assets, or cryptocurrencies, from tax violators.

On the 22nd, the city unveiled its plan to combat tax non-compliance through the innovative measure of targeting individuals who have evaded local taxes.

To execute this strategy effectively, Cheongju has reached out to seven major cryptocurrency exchanges, including industry giants Upbit and Bithumb. The city authorities have instructed these exchanges to delve into the crypto holdings of 8,520 individuals who owe more than 1 million won in local taxes. This comprehensive approach aims to ensure that individuals who have evaded their tax responsibilities are held accountable.

The forthcoming process involves a thorough examination of the data provided by cryptocurrency exchanges. Based on the responses received, the city will proceed with the essential steps for the seizure and collection of cryptocurrency assets from offenders. This strategic approach reflects the city’s commitment to enforcing taxation regulations and maintaining a fair fiscal environment.

The decision to target virtual assets comes from the recognition that cryptocurrencies can be employed as a means to mask the assets of local tax evaders. By leveraging the transparency and traceability inherent in blockchain technology, Cheongju seeks to ensure that local taxes are paid in compliance with regulations.

In a similar effort undertaken last year, Cheongju managed to collect overdue taxes from 17 individuals after receiving requests for details of virtual property holdings from around 16,000 people. The collected amount totaled 68 million won. Notably, measures of property confiscation were also applied for instances of non-payment, underlining the city’s commitment to maintaining fiscal integrity.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.