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Korean tax authorities seize $185M worth of crypto from tax evaders since 2021

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Korean tax authorities seize $185M worth of crypto from tax evaders since 2021

Korean tax authorities seize $185M worth of crypto from tax evaders since 2021 Monika Ghosh · 4 hours ago · 1 min read

In 2020, North Korea implemented a system where authorities started seizing assets of delinquents and selling them if taxes remained unpaid.

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Updated: September 22, 2022 at 11:43 am

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Cover art/illustration via CryptoSlate

South Korean authorities have seized approximately $185 million worth of digital assets from tax delinquents since 2021, Yonhap news agency reported on Sept. 22.

In the second half of 2020, tax authorities implemented a system of seizing the virtual assets of tax delinquents to pressure them to pay taxes. The authorities seized the delinquents’ accounts or assets based on information received from the cryptocurrency exchanges.

If the delinquents do not pay the taxes after the seizure of assets, the authorities sell the cryptocurrencies at market prices to recoup the arrears.

The highest amount of digital assets seized from a single delinquent stood at 12.49 billion won or $8.87 million. The Seoul resident held around 20 cryptocurrencies, including $2.27 million worth of Bitcoin (BTC) and $1.34 million worth of Ripple (XRP), according to the report. After the seizure, the individual paid the taxes and requested that his assets not be sold.

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Another delinquent paid the taxes after the authorities seized $6.16 million worth of virtual assets. Additionally, an individual who owed $1.91 million in national taxes had crypto assets worth $2.77 million seized.

The data was provided by the Ministry of Strategy and Finance, Ministry of Public Administration and Security, National Tax Service, and other government agencies.

ICOs

Kim Kardashian to pay SEC $1.26M for promoting EMAX security token

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Kim Kardashian to pay SEC $1.26M for promoting EMAX security token

Kim Kardashian to pay SEC $1.26M for promoting EMAX security token Christian Nwobodo · 3 hours ago · 1 min read

Kardashian has agreed to pay up the $1.26 million charge and will refrain from promoting any crypto securities token over the next three years.

1 min read

Updated: October 3, 2022 at 3:19 pm

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Cover art/illustration via CryptoSlate

American Celebrity Kim Kardashian has agreed to pay $1.26 million to the U.S. Securities and Exchange Commission (SEC) in settlement of claims that she promoted the sale of unregistered securities token EMAX.

According to the SEC, Kardashian was paid $250,000 by EthereumMAX to promote the EMAX token to her Instagram followers (now over 330 million).

As per securities law, any celebrity who promotes a crypto asset must disclose how much they received for the promotion.

“Investors are entitled to know whether the publicity of security is unbiased, and Ms. Kardashian failed to disclose this information.” said SEC Director Gurbir Grewal

Consequently, the SEC has asked Kardashian to pay back $260,000 received for her promotion and an additional $1 million for violating securities laws.

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Kardashian has agreed to pay up the $1.26 million and will refrain from promoting any crypto securities token over the next three years.

SEC chairman Gary Gensler advised investors not to make their investment decisions based solely on promotions by influencers.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors.”

Gensler added:

“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.” 

The SEC has an ongoing case against another influencer Ian Balina, who allegedly promoted unregistered SPRK securities tokens to his social media followers in 2018.

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Uzbekistan Introduces Monthly Fees For Cryptocurrency Companies

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Uzbekistan Introduces Monthly Fees For Cryptocurrency Companies

Crypto firms in Uzbekistan will have to pay fees to the state under new legislation proposed by regulators. The charges vary depending on the business activity and can reach $11,000 a month in the case of digital asset exchanges. Failure to pay will result in license suspension.

Crypto Operators in Uzbekistan to Be Charged Fixed Fees for Their Business Activities

Authorities in Uzbekistan have adopted a law which obliges entities working with cryptocurrencies to make special contributions to the state budget. The legislation, put forward by the country’s main crypto regulatory body, has come into force after registration with the Ministry of Justice, as required.

According to the bill authored by the National Agency of Perspective Projects (NAPP) under the President of Uzbekistan, licensed crypto companies will have to pay the charges each month. Different rates have been set for the various categories of cryptocurrency operators.

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Crypto exchanges, for example, will be charged the highest tariff of 120 million Uzbekistani soum (almost $11,000) while cryptocurrency stores will pay around $540, the Russian crypto news outlet Bits.media detailed in a report.

The tariff for individual miners will be around $270 per month and mining pools will have to transfer to the government a little over $2,700, at current exchange rates. At the same time, custodial service providers will enjoy the lowest fee — $135.

“Failure to pay the fee within one month constitutes grounds for suspension of the license. If the company does not pay the fee for two months within a year, the license may be canceled,” according to one of the law’s provisions. The NAPP will deduct 20% of each payment and the rest will go to the government coffers.

This year, Uzbek authorities have been quite active in their efforts to regulate the country’s growing crypto economy. In the spring, President Shavkat Mirziyoyev signed a decree expanding the regulatory framework for the Central Asian nation’s digital currency market. It provided legal definitions for crypto assets, exchange, and mining, and assigned oversight duties to the NAPP.

In June, the government in Tashkent presented a set of new registration rules for companies involved in the extraction of digital currencies and obliged miners to use renewable energy. Following a spike in activities of online platforms providing crypto services to Uzbekistanis without a local license, the NAPP took measures to block access to foreign crypto exchange sites in August.

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agency, bill, budget, Crypto, crypto exchanges, crypto miners, crypto mining, crypto stores, Cryptocurrencies, Cryptocurrency, Fees, Government, Law, Legislation, License, ministry, registration, Regulation, rules, tariffs, Uzbekistan, Uzbekistani

What’s your opinion about the new fees imposed by the government of Uzbekistan on crypto companies? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bill Aims To Limit Crypto Mining In Kazakhstan Only To Registered Companies

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Bill Aims To Limit Crypto Mining In Kazakhstan Only To Registered Companies

New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector.

Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining

Members of the Mazhilis, the lower house of Kazakhstan’s parliament, have put forward a new bill introducing rules for the extraction of cryptocurrencies in the country. Under its provisions, only companies registered at the Astana International Financial Center (AIFC) or non-resident entities that have agreements with licensed data centers, will be permitted to mine digital coins.

Kazakhstan became a magnet for crypto miners following China’s crackdown on the industry and the influx of mining businesses has caused a growing power deficit. AIFC, the Central Asian nation’s financial hub, is in the focus of government efforts to place the country’s growing crypto sector under oversight. Earlier this year, exchanges registered there were allowed to open accounts with local banks.

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The current procedure for notifying authorities of mining activities is voluntary, the crypto news outlet Forklog noted in a report on the legislative attempt. The process is regulated by an order issued by the minister of digital development. Only a third of all mining companies operating in Kazakhstan have registered, Member of Parliament Ekaterina Smyshlyaeva revealed.

“The uncontrolled use of electricity by ‘gray’ miners poses a threat to the energy security of Kazakhstan,” the lawmaker insisted. Smyshlyaeva added that the current legislation does not regulate the mechanism for the sale of the mined cryptocurrency or the role of local financial service providers and the circulation of digital assets. “The procedure for their production and the establishment of property rights to them are regulated only at sub-legislative level,” she explained.

According to Kazakhstan’s State Revenue Committee, the contributions of crypto mining entities to the state budget reached $1.5 million in the first quarter of 2022. In July, President Kassym-Jomart Tokayev signed into law a bill amending the country’s Tax Code to impose higher tax rates on crypto miners. The levies now depend on the amount and average price of electricity consumed for the minting of bitcoin and other cryptocurrencies.

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authorization, bill, coin minting, consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deficit, draft law, Electricity, Energy, Kazakhstan, Law, Legislation, Miners, mining, registration, Regulation

Do you expect the new law to reduce the number of entities authorized to mine cryptocurrencies in Kazakhstan? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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