South Korea City to Seize Crypto From Tax Evaders

The Gwacheon City in South Korea is set to launch a virtual asset electronic seizure system to track and confiscate crypto from tax evaders. With plans for full-scale seizures in the coming months, the city aims to identify hidden assets and enforce tax collection. Currently, 361 individuals owe more than $2,060 in local taxes, totaling about $12.9 million in arrears. By comparing records with data from major domestic crypto exchanges, authorities will track down these tax evaders. Despite the postponement of a 20% crypto tax by the South Korean government, local agencies now have the power to seize digital assets from tax evaders. Gwacheon officials emphasize the importance of their new electronic seizure system in closing tax loopholes and ensuring fairness. Advance warnings will be issued to encourage voluntary payment before any asset seizures take place. The city has already seized $206,000 worth of crypto from tax evaders in the past five years, with $75,500 recovered in unpaid taxes in 2024 alone. The implementation of the new system is expected to enhance enforcement efforts and deter tax delinquents.