Cryptocurrency has made many people millionaires, but it has also enabled many of them to evade tax payments. Tax evasion for most crypto holders has been a concern for some time, but South Korean authorities are no longer taking the matter lightly.

South Korea’s National Tax Service (NTS) is currently taking aggressive measures to ensure that all tax payment defaulters are held accountable for their actions. This comes after negligence in failing to take the necessary steps, despite several warnings from NTS against tax evasion.
What Are the Measures Taken to Combat Tax Evasion in South Korea?

Crypto Seizure Tactics

Due to the increasing rate of tax evasion, South Korea’s National Tax Service (NTS) has taken a much stricter route to curb the situation. Fishing out tax payment defaulters in the crypto space is challenging, but this hasn’t stopped the NTS from developing effective tactics to control tax payments.

The crypto seizure tactics may seem harsh, but they are the most effective way to catch tax evaders. This tactic is said to cover both the online and offline digital assets. Most crypto tax dodgers are using offline devices to store their digital assets. These devices are called cold wallets. A cold wallet is an offline storage device used by cryptocurrency investors to store their digital assets securely.

How Digital Assets Held in Cold Wallets Will Be Found

Since cold wallets are offline storage devices, you may wonder how the South Korean tax authorities plan to seize these assets. Finding a cold wallet requires physical searches of suspected defaulters. Suspected defaulters will be identified through thorough scrutiny of coin transactions. These transactions are tracked using programs designed to identify suspected offline storage locations.

Once these assets are seized, the NTS has the authority to freeze exchange accounts and liquidate the assets, as stipulated in South Korea’s National Tax Collection Act. Up to $100 million worth of crypto assets have been seized and liquidated by the NTS within four years. The amount of crypto assets seized and liquidated is sure to increase with this decision to commence the seizure of cold wallets.

What You Need to Know About the Crypto Market in South Korea

The crypto market in South Korea is steadily on the rise. The market has a trading volume of over 6 trillion won, which is likely to continue growing in the future as it attracts more investors.

If you are interested in investing in cryptocurrency assets, it is best to learn about the market from reputable websites. This will help you select only the relevant and accurate information. If you’re worried about not visiting the right sites, there is a page in Korea where you can explore categories and find multiple legit websites. This way, you can easily gain access to helpful sites and crypto news.

The South Korean crypto market is substantial and is likely to continue growing in the years to come.

How have the Crypto Seizure Tactics in South Korea Affected the Cryptocurrency Market?

As mentioned earlier, over $100 million worth of cryptocurrency assets have been seized and liquidated by the NTS within the past four years. While this type of news is expected to destabilize the crypto space, new investors continue to enter the market.

The crypto seizure tactics are a measure for tackling tax evaders. What this means is that if you keep to all the tax laws, you have nothing to worry about. Unfortunately, the number of tax dodgers continues to increase, as most investors fail to do what is right.

The cryptocurrency market in South Korea is substantial and is expected to continue growing in the future. While the crypto seizure tactics have affected some cryptocurrency investors, the market continues to boom.

Conclusion

The high number of unpaid taxes related to cryptocurrency in South Korea has led to an aggressive crackdown, which will likely continue until the entire tax evasion situation is completely eliminated.

Unfortunately, as the crypto market in South Korea grows, the rate of tax evasion also increases. This is due primarily to the anonymity associated with virtual assets. However, the country’s tax authorities have developed strong measures to combat tax evasion. Hopefully, the seizure of crypto wallets will help curb tax evasion.

Market speculation is a tricky thing to manage. It seems every other day someone has a hot new tip that says the market is going this way or that. People panic sell or buy up as much as they can be based on the smallest shred of information.

So we are always hesitant to present any of these market rumors to our readers. But sometimes the rumors we hear are a lot less specific and more general. And sometimes these rumors are worth talking about purely from a speculative angle. So today we want to look at a popular rumor we have heard time and time again. That 2021 is going to see a market boom, unlike anything we have seen in a long time. We are going to break down a few key elements of these rumors to help you understand, in simple terms, why economists predict this.

The Election

The biggest factor we can see in these estimates is the outcome of the 2020 election. The USA has been through a troubling time. With the world economies facing an unprecedented time this past year, and with political tensions at an all-time high, many see the results of this election as a sign that America can begin healing.

This has nothing to do with political bias. It is not unheard of for the market to strengthen when a new president is sworn in. Countries anticipate new trade deals. Different sectors receive new funding. As everything changes, people tend to look at it positively and the market reflects that.

Normally this change is minor. Nothing too crazy. But 2020 may be one of the most nail-biting elections in America’s history. The impact of this election is going to send waves through the economy for some time yet. This could be one of the main reasons they are predicting a market boom.

Education

Studies have shown that educational quality in relation to the world of business has been slowly increasing over the past few decades. But in the last few years, we have seen a surge in people taking their destiny into their own hands and starting up a small business or classifying themselves as entrepreneurs.

This increase in business knowledge means there are more and more companies being created. More supply on the market. And more money being circulated at the local and national level. As people are more clued up in the business world, we will see the emergence of more companies offering leads to businesses. The best at generating leads in multiple industries, Exclusive Leads Agency spoke to us about this phenomenon. They said it is not unheard of to see a market boom as people tend to move towards independent work.

Brexit

Brexit was the referendum held in Great Britain in 2016 where they decided they would leave the European Union. And while this is going to have a huge impact on the United Kingdom itself, it also has massive repercussions for the rest of the world.

Particularly the global marketplace. England is a powerful and rich nation. One of the biggest players on the world stage. But until now their trading regulations and laws have been slightly controlled by the EU. As part of the agreement of any joining nation. It also meant that the United Kingdom had to prioritize trading with other EU nations before nations not included.

America and the UK have always had a special relationship. And this has always been reflected in their trade agreements and willingness to share their information. But now the UK has finally left the EU, the market predicts there will be an increase in trade between the USA and the UK. While we are skeptical about this, due to the shifting political scene both here and over there, there is no doubt that Brexit is playing a significant factor in these rumors.

Bouncing Back

We have been in a recession for some years now. And it is easy to view a recession as this big scary, country dooming thing. But the truth is recessions are an often natural occurrence in any economy. Due to factors outside our control, such as a pandemic. And whenever there is a recession, there are always rumors circulating that the next year will see them bounce back.

It is very rare for a recession to never end. And even rarer for it to doom a country. In America, we often see a bounce back sooner or later. So that could be where these rumors are coming from. This idea that we are about to head into the bounce back. Taking into account all the other factors we have mentioned so far, it is no surprise that many people seem to think this.