<Anchor> It's
friendly economy time. Today (the 8th), I will be with reporter Kim Hye-min. Today’s Bitcoin story is a different story, but one after another, people who made illegal foreign exchange transactions using this Bitcoin were caught.
<Reporter> Have
you ever heard of 'Kimchi Premium'? It refers to a case in which the price of cryptocurrency traded in Korea is higher than that of foreign countries, and the story that there are many illegal transactions aimed at profiting from the market price has been revived since the beginning of this year, when the Bitcoin price soared.
In fact, it turns out that there were a lot of cases like this this time. When the Korea Customs Service recently conducted a planned investigation into illegal foreign exchange transactions in cryptocurrencies, the total amount of illegal transactions amounted to 1.7 trillion won.
The trick is simple. It is to buy cryptocurrency from abroad and then bring it back to Korea and sell it back. When Bitcoin skyrocketed, the kimchi premium also went up. You can make huge profit margins.
<Anchor>
1.7 trillion won? That's a lot. However, this is usually the case for illegal foreign exchange transactions. Then it seems like some criminals, unusual people, etc., but surprisingly they weren't?
<Reporter>
There were also foreign students and office workers. An international student opened several accounts in his/her own name abroad, and made several remittances from a Korean account to an overseas account for study expenses.
Then, with this money, I bought cryptocurrency on an overseas exchange and sold it on a domestic exchange. The number of remittances from a domestic account to an overseas account was 850 times, amounting to 40 billion won.
Another office worker went abroad to withdraw foreign currency from an ATM and then used it to buy cryptocurrencies. It is said that he used overseas ATMs 12,000 times. The purchased cryptocurrencies were resold in Korea to earn 1.5 billion won in market profit.
You may be thinking, why is it a problem to buy cryptocurrency overseas with my money and sell it back in Korea? There is no problem with withdrawing money from an overseas ATM and using it for travel expenses, but buying cryptocurrency with this is not a problem. Violation of the Foreign Exchange Transactions Act is subject to criminal punishment and fines for negligence.
<Anchor> In some
ways, I think there are people who think that I used information to make money, but no matter how much it is, you should keep in mind that you must not violate the current law. Let me tell you another story. They say that these days, local governments seize cryptocurrencies like that.
<Reporter>
That's right. You may have heard this story at least once, where you secretly seized cryptocurrency to collect taxes. Last April, the city of Seoul found and seized 25.1 billion won worth of cryptocurrencies from about 670 people who owed their taxes.
There were various types of cryptocurrencies such as Bitcoin, Dragonbane, and Ripple. April is when cryptocurrency prices soared. However, the transaction was blocked, so 118 of them voluntarily paid 1.26 billion won in tax arrears.
As this has spread as a best practice to local governments across the country, other local governments are also seizing the cryptocurrency of delinquents one after another.
The local government that seized the most cryptocurrencies was Gyeonggi-do, with more than 12,600 people seized. This valuation alone is said to be worth 53 billion won.
This includes doctors, building owners, and school instructors. People who had money to buy cryptocurrencies and did not have money to pay taxes were caught by the tail one after another.
<Anchor>
That's it. However, there is one thing that reporter Kim is a little confused about. The government honestly doesn't recognize Bitcoin and cryptocurrency. It is not accepted as currency. But is it legally possible to seize virtual bitcoin, a currency that is not recognized?
<Reporter> A
Supreme Court precedent came out in 2018 that "cryptocurrency is an intangible asset that can be confiscated." From then on, confiscation was possible.
In March of this year, the Specific Financial Information Act, which stipulated the concept of virtual assets, was enforced, making it possible to convert them into cash.
At this time, the Suwon District Prosecutor's Office confiscated the pornography operator and cashed out the bitcoins that had been stored for over 3 years.
Bitcoin, which was 270 million won, was sold for a whopping 12.29 billion won and returned to the national treasury. The National Tax Service is also said to have forcibly disposed of cryptocurrencies of non-taxpayers for the first time in April.
However, there is a problem that still remains when foreclosure or confiscation. Because there are some exchanges that do not collect the resident registration numbers of members, investigative agencies and the National Tax Service have to check all identities one by one. there is said to be.
However, since exchanges also have monitoring and reporting obligations at the level of financial companies, it is now almost impossible to hide assets with cryptocurrency.
If foreclosure occurs, the delinquent's cryptocurrency is tied to the wallet, and even if the market price changes rapidly, it cannot respond to it.
Local governments and the National Tax Service are setting up a policy to sell cryptocurrency of delinquents who endure to the end at market price.