South Korea Proposes New Tax Codes to Target Crypto Tax Evaders

Published by
South Korea Proposes New Tax Codes to Target Crypto Tax Evaders

South Korea has proposed to introduce new tax regulations to debunk tax evaders using cryptocurrency. The regulators seek to get permission for tax authorities to impound crypto assets that are stored away by tax evaders in individual wallets. The expanding crackdown on crypto comes as part of financing the rising welfare costs of the nation.

Advertisement

Seize assets in Individual wallets

Current regulations restrict authorities from seizing virtual assets held in individual digital wallets. However, the ones that are accessible through exchanges can be impounded to pay the overdue taxes. This proposal is the Korean government’s initiative to review the tax codes annually and aim to evaluate and edit over 16 existing tax codes, according to Reuters.

South Korean crypto crackdown aims to impose stricter regulation on the crypto markets to sweep the digital assets market clean, including the anti-money laundering regulations and probing for cyber and economic crimes using cryptocurrencies.

According to President Moon Jae-in, the authorities are seeking expansion of tax regulation to cover the prior economic and social losses in the nation. Furthermore, the government has also proposed extending tax imposition on organizations that are employing outside of Seoul and decrease the corporate income tax for firms that are employing within the nation.

Advertisement

20 percent tax on crypto

In February, the Ministry of Economy and Finance of South Korea announced that deep-pocket investors earning over 2.5 million won from the crypto trade will be liable to pay 20 percent tax from next year.

Inheritances and gifts in form of cryptocurrency will also fall under the tax umbrella. The price of the asset will be calculated based on the daily average price for one month before and one month after the date of the inheritance or gift.

Advertisement

Regulatory action against foreign exchanges in Korea

Korean crackdown of the crypto sphere is not limited to imposing tax regulations. Recently, over 27 foreign cryptocurrency exchanges with business operations in Korea were notified by the Korea Financial Intelligence Unit (KFIU) to register with it, in accordance with the latest Korean AML regulations. Cryptocurrency exchanges are also required to acquire a certificate in information security from the regulators.

Advertisement

Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions

Standard Chartered analyst Geoff Kendrick has predicted that the Bitcoin price could suffer a significant…

October 22, 2025
  • News

Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7

Crypto ownership is a topic that has been discussed across major forums globally in the…

October 22, 2025
  • News

Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%

Crypto exchange Robinhood has listed the Binance coin for spot trading for its U.S. customers.…

October 22, 2025
  • News

Bitget Partners With Google Developer Group On Hackathon To Support AI Innovation

Bitget, a leading crypto exchange in the world, has joined forces with Google Developer Group…

October 22, 2025
  • News

Can Cardano Save Kadena? Hoskinson Reaches Out After KDA Token Plunges 60% Amid Shutdown

Kadena has announced it was shutting down operations, sending its KDA price into a freefall.…

October 22, 2025
  • News

Analyst Turn Bullish with $400 SOL Target as Hong Kong Approves First-Ever Solana ETF in Asia

Hong Kong has officially approved the region’s first-ever Solana ETF in Asia. This comes as…

October 22, 2025