South Korean prosecutors eventually sold Bitcoin (BTC) they had seized from a criminal in 2017. The coins seized by the authorities during the arrest were shelved for 4 years.
It is reported that the aforementioned coins were sold for 10.5 million more than the value at the time of the arrest. The cash was transferred to the coffers of the country’s national treasury.
According to the Suwon District Attorney’s Office, the first Bitcoin seized in Korea was sold by the authorities. The coin, which was valued at $ 238,000 at the time of the seizure, was recently sold for $ 10.8 million. And with this sale, there has been an increase of 4000% in the value of Bitcoin at the end of 4 years. Looking at this pricing, it is assumed that the value of one Bitcoin at the time of the arrest in April 2017 was approximately $ 1,300.
At that time, the confiscated coins were shelved because there were no regulations or laws regarding cryptocurrencies. The South Korean government enacted a large-scale crypto law for the first time in late March. With this law, the government put pressure on exchanges and virtual asset service providers to trade with real name and report their activities to the South Korean Financial Intelligence Unit. Immediately after the law went into effect on March 25, prosecutors reportedly sold the coins.
South Korea’s determination to make regulations regarding cryptocurrency stems from concerns over the emergence of crypto being used by tax evaders and its use in money laundering. As of January 2022, the country will also enact laws that provide a 20% capital tax on income from cryptocurrency trading.
The South Korea National Tax Authority claimed that the number of cryptocurrency investors increased by 25% over the past year, resulting in an 800% increase in overall trading volume.