Report: South Korean City to Confiscate Crypto from Tax Evaders
Authorities in Cheongju want to confiscate any cryptocurrency that owes the government at least $750 worth of crypto taxes.
Cheongju in South Korea, the capital of North Chungcheong Province, announced that it would start confiscating cryptocurrencies belonging to local taxpayers .
According to a report by local news agency Yonhap, on Aug. 22, the Cheongju administration called on seven South Korean cryptocurrency exchanges to probe the holdings of thousands of tax evaders.
According to reports, city authorities have ordered trading platforms Upbit and Bithumb to investigate the crypto assets of 8,520 users who owe at least 1 million won ($750). According to the report, after the investigation, Cheongju officials plan to confiscate the cryptocurrency from tax evaders.
The city government claims that cryptocurrencies are increasingly being used to disguise property in South Korea. The goal of this initiative is to hold South Koreans accountable for evading their tax obligations.
The Cheongju government collected unpaid taxes from 17 people in 2022 after receiving details of 16,000 investors’ crypto holdings. The city collected $51,000 in taxes.
In recent years, South Korea has increased the number of tax-related cryptocurrency seizures. The South Korean government seized 260 billion won ($180 million) worth of cryptocurrencies between 2021 and 2022. In 2021, the Seoul Metropolitan Government seized 25 billion won ($22 million) worth of cryptocurrency from individuals and businesses.
Cryptocurrencies seized include Bitcoin BTC from tax evaders in 2021.
South Korea is not the only country confiscating cryptocurrencies from tax evaders. Last year, Argentina’s tax authority seized more than 1,000 cryptocurrency wallets linked to defaulting taxpayers in the country. The U.S. Internal Revenue Service is also seizing cryptocurrencies from tax evaders, according to Robert Wearing, Deputy Assistant Chief Counsel to the IRS.
