South Korean tax officials in Pohang are set to seize cryptoassets from 5,208 residents who failed to pay local taxes as part of a national crackdown. In 2023, tax officials seized almost $29 million in coins and fiat. The individuals who owe taxes of $370 or more will have their cryptoassets seized. The city’s Nam Gu Office aims to collect almost $5 million in tax arrears from citizens who have failed to pay over $12.2 million in taxes. Tax officials utilized data from major domestic crypto exchanges to identify residents who own crypto and have fallen behind on their taxes.
The city has decided to actively collect delinquent taxes by seizing the individuals’ coins. If it is proved that the coins belong to tax evaders, the city will immediately seize and freeze transaction activities such as sales or withdrawals. Those who do not voluntarily pay their tax bills even after seizure will have their virtual assets sold on the exchange market. The head of the tax department at the Nam Gu Office stated that they will raise awareness of delinquent taxpayers by seizing and selling virtual assets, as well as introducing customized collection techniques suitable for the digital age.
Last month, tax officers in Hwaseong seized over $768,500 worth of crypto from tax dodgers, with $567,000 frozen from a single individual. In January, tax officials in Incheon seized $375,000 worth of coins as part of a city-by-city crackdown. South Korea’s parliamentary election campaign is in full swing, and crypto is a major battleground, highlighting the nation’s status as a significant digital asset market. The crackdown on tax evaders who own cryptoassets is part of the country’s efforts to ensure tax compliance and enforce regulations in the digital asset sector.
The national crackdown on tax evaders who own cryptoassets is a major initiative by South Korean authorities to collect outstanding taxes and enforce compliance among citizens. By utilizing data from major domestic crypto exchanges, tax officials are able to identify residents who have fallen behind on their tax payments and seize their virtual assets. The seizure and sale of cryptoassets belonging to delinquent taxpayers serve as a deterrent for others who may be evading taxes. The efforts to raise awareness and introduce customized collection techniques suitable for the digital age show the government’s determination to crack down on tax evasion in the digital asset sector.
The seizure of cryptoassets from tax evaders is part of a comprehensive plan to collect tax arrears from residents who have failed to pay their local taxes. By actively seizing virtual assets and freezing transaction activities, tax officials are sending a strong message to delinquent taxpayers. The ultimatum given to tax evaders to voluntarily pay their tax bills or face the sale of their virtual assets on the exchange market underscores the government’s commitment to enforcing tax compliance. The crackdown on tax dodgers in various cities across South Korea highlights the nationwide effort to ensure tax payment among individuals who own cryptoassets.
