South Korean tax officials have apprehended 12,000 tax offenders and seized around $47 million (50 million won) in penalties according to the Financial Times.
The recovery is regarded as the heftiest “cryptocurrency seizure for back taxes in Korean history.”
The Gyeonggi government have been investigating tax evasion activities within the province for some time.
The tax evaders, including a high profile “renowned home-shopping channel show host”, used local exchanges that did not require strict verification processes to hide their assets.
The Gyeonggi government were able to hunt down the tax evaders down using their phone numbers.
The punishment for tax offences act recommends “imprisonment with labor for not more than two years” or “a fine equivalent to not more than double the amount of tax evaded, refunded or deducted” for offenders.
The South Korean government are resolved to effect a more stringent control on the cryptocurrency industry in a bid to curb money laundering and other forms of fraud.
All crypto exchanges within the country are expected to have completed their registration with the financial authorities by September 2021.