South Korea has the biggest seizure of cryptocurrency-equivalent cash for tax evasion.
The Gyeonggi region announced the most extensive tax seizure ever, in which more than $47 million was confiscated from 12,000 people. According to the local department, the investigation took over "many months", and the amount was confiscated in the equivalent of Bitcoin, Ethereum, and other popular digital currencies.
The main difficulty for law enforcement agencies was that they had to process the received data about the suspects (including their phone numbers) manually since various crypto exchanges do not force account owners to complete the identification process. At the same time, it is still unknown which exchanges and enterprises brought investigators to the attackers. Given that Gyeonggi is the densely populated region in the country, which involves Seoul, it's scary to imagine how much information had to be processed during the proceedings.
By the way, it is the absence of mandatory KYC on exchanges that have led to the fact that regulators have significantly tightened measures to trading floors in recent years. The new exchange user data processing policy also includes the verification of assets placed within the site. If a token has low volume, lacks feedback from the team, or just a “vague” improvement and roadmap, it can be forcibly excluded from the listing.
One of the largest exchanges in the country, Upbit has previously conducted similar “exceptions” for some tokens. The platform was one of the earliest to receive a license to proceed to work, despite the increased attention of the local regulator.
Meanwhile, banks in Korea are reluctant to contact small crypto exchanges functioning in the country, which is why the latter have concerns about the possibility of further work.