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South Korean authorities to collect delinquent taxes from crypto cold wallets

Legal

forkast.news 27 July 2021 10:21, UTC
  
Reading time: ~1 m

South Korea’s newly amended tax law will allow authorities to collect delinquent taxes hidden in cryptocurrency cold wallets.

Fast facts

  • The Ministry of Economy and Finance yesterday announced the 2021 Tax Law Amendment, which grants authorities the power to seize delinquent taxes transferred to crypto holdings. The seized crypto will be sold on exchanges and offset against national tax that has not been paid.
  • Previously, cryptocurrency held in exchanges by individuals with unpaid taxes was viewed as a bond that could be seized through foreclosure. However, it is difficult to apply the same collection method if crypto assets are kept in a personal cryptocurrency wallet.
  • The newly amended tax regulations will be applied from the foreclosure or sale of cryptocurrency property on Jan. 1, 2022.

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