S Korean City of Incheon Seizes $375,000 Worth of Crypto from ‘Tax Dodgers’

The South Korean city of Incheon has reportedly seized cryptocurrencies worth around $375,000 from four local tax dodgers. According to local media reports, the Incheon Metropolitan Government and the Incheon Regional Tax Office jointly conducted two separate raids in the city between August and October 2020, recovering a total of approximately 417 million won ($374,000) in crypto assets from four individuals.

The reports also note that this was the first time the government had taken action against taxation on digital assets such as cryptocurrencies. The government found out that the four individuals had failed to pay taxes on crypto income gained more than three years ago, and after raiding their homes, confiscated cryptocurrencies related to their activities.

In a statement, an Incheon official said, “Digital currencies have become a new means for tax evasion in recent years. We plan to continue joint efforts to crack down on such activities.”

The South Korean government has been making efforts to impose taxes on digital assets since 2019. The government also released a guideline for taxation on crypto assets earlier this year. Furthermore, the government has set up a task force to oversee crypto taxation and investigate offences related to crypto tax evasion.