AI uncovered undisclosed Bitcoin stash worth approximately $230 million in South Korea
Jeju City, South Korea, has taken a significant step in combating tax evasion within the cryptocurrency sector by deploying artificial intelligence (AI) tools to analyse cryptocurrency transaction records and detect undeclared crypto assets held by delinquent taxpayers.
This AI-driven approach has enabled the city's tax department to trace hidden crypto holdings more effectively. As a result, over $165,000 in cryptocurrencies were seized from 49 tax delinquents, as part of efforts to recover unpaid local taxes totalling around 19.7 billion won (approx. $14.2 million).
The AI-powered analysis of transaction data allowed the city's tax department to sift through large volumes of blockchain and exchange transaction records to identify suspected concealed crypto assets that taxpayers had not declared. By reviewing accounts on major Korean crypto exchanges such as Bithumb, Dunamu, Coinone, and Korbit, authorities pinpointed delinquent taxpayers with digital holdings. These exchanges were designated as third-party debtors, enabling the direct seizure of crypto assets to cover unpaid taxes.
Hwang Tae-hoon, head of Jeju's Tax Division, emphasised that leveraging AI and virtual asset data was crucial to uncovering high-value tax evasion cases, recovering revenue, and fostering a culture of honest tax compliance. The AI tools bolster investigative accuracy and efficiency over manual methods.
This initiative aligns with South Korea's broader, intensifying efforts since 2021 to tighten oversight of crypto assets for tax enforcement. Cities like Seoul and Paju have undertaken similar AI-assisted enforcement actions. In fact, nationwide efforts have resulted in the confiscation of over $180 million worth of cryptocurrencies between 2021 and 2022 from tax evaders.
With more than 16 million South Koreans active on crypto exchanges, officials are determined to keep tightening the net around those seeking to hide assets in digital wallets. The individuals will now be pressed to settle their debts or face liquidation of their crypto holdings.
The crackdown on tax evasion in Jeju City is part of a nationwide effort to tighten enforcement on cryptocurrency holdings. South Korea has been one of the strictest enforcers in seizing digital assets from delinquent taxpayers, with regulators empowered since 2021. Some delinquent taxpayers had been "lining their pockets with cryptoassets," according to media outlets.
This latest example of South Korean authorities using technology to combat tax evasion in the cryptocurrency sector underscores a commitment to bolster efforts against tax evasion and uncover hidden assets. As the digital asset space continues to grow, it is expected that more jurisdictions will follow suit in leveraging AI and other technologies to enhance tax compliance.
Read also:
- Comcast Introduces Sports-Oriented Video Bundle in Preparation for the World Cup Tournament
- Is Maruti's reign over the SUV market being challenged by Mahindra's aggressive move to snatch the top spot?
- Social Security Administration Abandons Plan for Electronic Payments: Important Information for Recipients of Benefits
- Increased energy demand counters Trump's pro-fossil fuel strategies, according to APG's infrastructure team.
