Key Takeaways:
- Jeju City tax officials seized $166K in crypto from 49 alleged tax evaders using AI-based analysis.
- Authorities are investigating 2,962 individuals with unpaid taxes worth $14.2 million.
- South Korea has seized over $180 million in crypto since 2021, signaling stricter enforcement.
The cryptocurrency market in South Korea is growing at a rapid pace, with over 500,000 new people entering the crypto market in November following the presidential campaign of U.S. President Donald Trump. South Korean-based Yohap news agency reported that currently 16.29 million people have accounts at the top five domestic virtual asset exchanges Upbit, Bithumb, Coinone, Korbit and Gopax. Based on these statistics, approximately 32% of the country’s population participated in the crypto market.
The expanding crypto market calls for more compliance in order to safeguard against bad actors. Tax officials from Jeju City, which is the capital of the nation’s largest island, reported the seizure of digital assets from tax evaders. Even utilizing AI-based techniques to analyze tax-related information.
Over 19.7 Billion Won Under Investigation
The Jeju City Tax Division discovered 49 alleged tax evaders in possession of digital assets worth more than $166,000 in total. This move is part of the authorities’ larger plan, which includes investigating 2,962 people with a total of 19.7 billion won ($14.2 million) in unpaid tax payments, according to local media outlet Newsis.
It is quite noteworthy to see the latest AI-related technology being used to facilitate the investigation. Hwang Tae-hoon, the Chief of the Jeju City Tax Division, stated that the agency will continue to “collect high-value tax delinquents through AI-based information analysis, striving to secure substantial tax revenue.”
A Growing Nationwide Trend
The South Korean government had passed laws in 2021 allowing the seizure of cryptocurrencies from tax delinquents; since then, several crackdowns have taken place, apart from the incident in Jeju. Back in 2021, $22 million was seized from Seoul-based crypto companies and individuals who were accused of tax evasion. Throughout 2021 and 2022, the government confiscated a total of $180 million worth of digital assets nationwide.
The South Korean government is taking a proactive approach by using advanced AI-related technology to conduct tax evasion investigations and on-chain analysis. The 16+ million crypto consumers and digital asset providers could potentially face increased regulatory scrutiny.
