The South Korean government profited from an old BTC crime haul, as the coins remained in cold storage for four years after being confiscated by authorities after they were arrested so let’s read more in our latest Bitcoin news today.
The South Korean government profited from selling confiscated BTC from a 2017 crime and it’s worth hit $10.5 million more than it was at the time of the arrest. The cash was deposited in the account of the country’s national treasury. According to the reports coming out of the Suwon District Prosecutors Office, this is the first time that confiscated coins were sold by authorities and the first time that the coins moved since being stashed in cold storage in 2017.
Originally worth $238,000 at the time of confiscation, the coins were sold for $10.8 million and marked a 4,400% increase in value in four years. Based on the percentage growth, we believe that BTC was priced at $1,300 when the arrest was made back in 2017. With no specific crypto laws or regulations in place, the authorities left the coins in the cold storage but the South Korean government enacted widespread crypto-specific laws this year which put more pressure on exchanges and virtual asset service providers to start using name trading accounts and report activities to the Korean Financial Intelligence Unit.
The prosecutors sold the coins once the laws were put into place a few days ago. the determination of the country to regulate the crypto space came from the many revelations regarding crypto’s use by tax evaders and now the concerns about money laundering as well. Next year, the new laws will come into force with a 20% capital gains tax on profits made on crypto trading. The national tax service of South Korea claimed that the number of crypto investors increased by 25% in 2020 which resulted in an 800% increase in the overall trading volume.
As reported recently, South Korea works on a new blockchain-based project that will bring a blockchain-based COVID vaccine passport via a smartphone app later in the month, according to the announcement. South Kora is joining a number of nations that introduce vaccine certificates enabling cross-border travel while mitigating the risks of infections. The government developed the app by using blockchain technology as a way to provide security against the possibility of identity theft.