Bitcoin, a virtual currency, was born in 2009. It is a P2P form of encrypted digital virtual currency. As a medium, transactions can be carried out on the network platform. Bitcoin is very different from other forms of virtual currency. , That is, it is very scarce, because of its scarcity, it is very valuable.
At present, the number of bitcoins in the global network platform is roughly 21 million. Although the number is limited, it is widely circulated among various countries, and South Korea is one of them. In South Korea, the value of a bitcoin has now reached 70.59 million won, which is equivalent to 410,000 yuan in RMB, which has once again set an all-time high. Most transactions of Bitcoin, a virtual currency, are conducted anonymously, and there is no way to directly inquire about the transaction’s personal assets. I did not expect that there have been cases of tax evasion and money laundering with Bitcoin in South Korea.
South Korea’s Bitcoin value skyrocketed
In South Korea, the value of virtual currencies like Bitcoin has been soaring in recent years. It is reported that the value of virtual currencies in the market has increased by more than 10 times. Many entrepreneurs or celebrities use their value to resell them on online platforms. The value of the coin has reached 410,000 yuan, and there is an upward trend. The value of one coin has now set the highest record in the Korean virtual currency market.
Tax evasion and money laundering are frequent
The non-real-name system for encrypted transactions of virtual currencies has caused frequent chaos in the industry. There are currently hundreds of virtual currency trading online platforms in South Korea, but only 4 of them can identify the personal asset status of the accounts. These 4 have adopted measures to register real-name bank accounts. Most other virtual currency trading platforms do not. The way to know their trading trends and capital situation, and then many investors take advantage of this loophole for tax evasion or money laundering, this phenomenon frequently occurs, which has attracted the attention of the South Korean government.
Formulate relevant policies for the virtual market government
Because of the phenomenon of money laundering and tax evasion in South Korea, the government has formulated relevant policies in response to this situation, mainly for anti-money laundering and anti-tax evasion. It is reported that the government requires that all virtual Currency platforms need measures such as identification, real-name account registration transactions, and at the same time make mandatory requirements for qualification declarations for virtual currency trading platforms. Now the Korean government is paying more and more attention to industry regulations and thresholds.
Taxation of virtual currency
In addition to standardizing industry requirements, the South Korean government also stated that it will deduct 20% of the income tax from personal income for people who trade on the virtual market next year, as long as the people who receive more than 2.5 million won from the virtual market each year Both need to pay 20% income tax. It can be seen that the Korean government now attaches great importance to the trading of virtual market currencies and includes them in the tax payment system.
The South Korean government has investigated and dealt with thousands of people involved
Some Bitcoin investors in South Korea make a lot of money in the virtual market, and at the same time use loopholes in the virtual market for tax evasion and money laundering, which obscures their tax obligations. This behavior is to a certain extent. This constitutes a violation of the law. The South Korean government has previously investigated and punished thousands of persons involved and has recovered a certain amount of tax. For those investigated and punished, the South Korean government has implemented compulsory tax collection. This is the first time that the South Korean government has used This as a way to make demands on the virtual currency market Spark Global Limited.
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