South Korea's Implementation of Cryptocurrency Tracking System Nets 6.2 Billion Won in Taxes

In an unprecedented move, Gyeonggi Province in South Korea has harnessed the power of a cryptocurrency tracking system to chase down tax evaders, collecting a staggering 6.2 billion won in overdue taxes.

This cutting-edge technology offers a glimpse into the future of tax collection, showcasing a swift, efficient method to identify and process delinquent taxpayers' assets.

Find out how this system is revolutionizing tax enforcement, making it faster and more effective than ever before.

A Revolutionary Approach to Tax Collection: Gyeonggi Province's Success Story

In a landmark achievement for tax enforcement, Gyeonggi Province, the most populous province in South Korea, has successfully collected a total of 6.2 billion won in taxes from delinquent taxpayers following the 2023 implementation of a "cryptocurrency tracking system for tax evaders."

This system, as reported by local media, enables the comprehensive tracking, seizure, asset transfer, sale, collection of won, and lifting of seizures of delinquent taxpayers' cryptocurrency holdings all within the system itself.

Upon inputting the names of delinquent taxpayers into the system, it initiates a thorough investigation into the cryptocurrencies held by these individuals, encompassing processes from tracking to seizure and sale.

The system leverages mobile phone numbers from the resident registration data owned by the municipality to detect "cryptocurrency exchange accounts of delinquents," significantly enhancing the success rate of identifying tax evaders and delinquents.

Streamlining the Tax Collection Process from Delinquents

Previously, the process of collecting taxes from delinquents involved sending a list of delinquents to exchanges to confirm their presence, followed by tracking, seizure, and sale operations.

This method traditionally took up to six months. However, with the new tracking and management system, the duration has been drastically reduced to approximately 15 days.

The recent investigation targeted individuals who had overdue taxes exceeding 3 million won, identifying 5,910 cryptocurrency exchange accounts and successfully collecting a total of 6.2 billion won in taxes.

This system not only simplifies the tax collection process but also represents a significant step forward in using technology to enforce tax laws and regulations.