In the city of Jeju, South Korea, local authorities have initiated the process of seizing digital assets from citizens who have significant tax debts. Following a large-scale asset audit of over 2,900 individuals, officials identified 49 debtors who own cryptocurrencies.
This is reported by Finway
Scope of Tax Debt and Digital Assets
The total amount of unpaid taxes among all audited individuals exceeds 19.7 billion won, which is over $14 million. Special attention was given to debtors with tax debts exceeding 1 million won (approximately $750). During the audit through four major Korean cryptocurrency platforms — Bithumb Korea, Dunamu (Upbit), Coinone, and Korbit — it was found that 49 individuals hold digital assets totaling 230 million won (about $167,000).
Plans for Cryptocurrency Seizure and Further Steps by Authorities
The authorities plan to officially recognize cryptocurrency exchanges as “third-party debtors” and initiate the process of seizing digital assets to recover tax debts. AI-based analytics will be used to enhance control over hidden incomes.
“We will continue to take strict measures against individuals attempting to hide income using cryptocurrencies. By applying AI-based analytics, we will strengthen the detection of major debtors and ensure revenue for the city budget.”
These actions demonstrate an intensified fight against tax evasion using cutting-edge technologies and digital financial instruments. It is worth noting that earlier, South Korea considered various approaches to regulating stablecoins.