IRS Summonses Crypto Account Holders as South Korea Continues Crackdown

There is no doubt that this year has been the best of Bitcoin, but it turns out that its exponential rise in the age of the pandemic has put it in the spotlight of the government agencies. For the past few years, the American IRS has been hunting the cryptocurrency in search of more data about the US taxpayers who have at least managed more than $20k in transactions. It looks like that the Internal Revenue Service is not going to slow down anytime soon as they have also moved to the court. 

In Massachusetts, a court has granted the federal agency to serve account holders with John Doe summons. Interestingly, the IRS enjoys the support of the Justice Department and the court that several individuals might be hiding their taxable assets.

South Korean Continues Crypto Crackdown

After Turkey, China, and the United States, South Korea joins the list of countries trying to combat the increasing use of decentralized platforms and digital currencies. A senior government official said that the crackdown comes amid a boom in the crypto market and rising concerns over its speculative nature and potential of being used in illicit activities.

As part of their crackdown, the government regulatory agencies will ask the local institutions to strengthen surveillance of transactions. And if any violation is found, it must be directly reported to the country’s Financial Intelligence Unit.

Since the South Korean government passed a law in March, the crypto market has been facing strict regulations. Under the new law, the crypto platforms are told to maintain contact with local financial institutions and ensure real-name account activities. Meanwhile, the country’s tax collector has been ramping up its efforts to combat tax evasion.

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