South Korean province implements digital system to track tax evaders’ crypto
The Gyeonggi Tax Department used the resident registration data of “delinquents,” tracing their mobile phone numbers to detect their accounts on crypto exchanges.
The Tax Justice Department of Gyeonggi — the most densely populated province in South Korea — managed to collect 6.2 billion won ($4.6 million) of non-declared taxes last year after implementing a digital tracking system aimed at crypto accounts of tax evaders.
As reported by Yonhap News Agency on Feb. 22, the Gyeonggi tax department used the resident registration data of “delinquents,” tracing their mobile phone numbers to detect their accounts on virtual asset exchanges.
The principal innovation is a digital tracking system. Previously, the tax services had to request information from crypto exchanges on a case-by-case basis. The communication and document exchange took up to six months. According to Yonhap, the digital management system developed by the province reduced this process to around 15 days.
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