South Korean Tax Authority Seizes 5,208 Coins from Crypto Traders
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South Korean tax officials in the city of Pohang aim to confiscate cryptocurrencies from 5,208 residents who have not paid their local taxes.
The measure is part of a nationwide crackdown. In the course of this action, tax officials confiscated nearly $29 million worth of coins and fiat money in 2023.
According to Kyungbuk Shinmun and Daegu Shinmun, all individuals evaded local taxes worth $370 or more.
On April 7, the Nam Gu (South District) municipal office said the measure is part of its “Comprehensive Plan for the Collection of Local Tax Arrears 2024” action.
South Korea’s crackdown on taxes could lead to the liquidation of coins
Nam Gu officials aim to collect nearly $5 million worth of tax arrears from citizens.
They believe people in the city have not paid over $12.2 million worth of taxes. Tax officials have combed through the data of the four largest domestic crypto exchanges – Bithumb, Upbit, Korbit and Coinone.
Using this data, where all wallets are legally tied to bank accounts with a “real name” and social security number, tax officials were able to determine that 5,208 residents who are behind on their taxes own cryptocurrencies.
The city said it has decided to “actively collect delinquent taxes” by “seizing” these individuals’ coins.
If it turns out that the coins actually belong to “tax evaders,” the city said it will “immediately seize” and “freeze” “transaction activities such as sales or withdrawals.”
The city added that tax defaulters will then be given an ultimatum. Citizens who do not “voluntarily” pay their tax bills “even after confiscation” will see their “virtual assets sold on the exchange market.”
Won Ki-ho, head of the tax department at the Nam Gu Office, said:
“We will do our utmost to raise awareness of delinquent taxpayers. We will do this by confiscating and selling virtual assets. And we will also introduce customized confiscation techniques suitable for the digital age.”
South Korea’s parliamentary election campaign is in full swing and cryptocurrencies are one of the battlefields, underscoring the country’s status as a major digital asset market https://t.co/spLQTA9RLa
— Bloomberg (@business) April 5, 2024
Last month, tax officials in the city of Hwaseong said they had confiscated over $768,500 worth of cryptocurrencies from “tax evaders.”
Officials in the city said they froze $567,000 of the total from a single person.
In January, tax officials in Incheon seized $375,000 worth of coins in a city-by-city raid.
