Cheongju, the capital city of the North Chungcheong province in South Korea, has announced that it will start seizing the cryptocurrencies of local tax offenders. In recent years, the transfer of money to the cryptocurrency side for tax evasion has caught the attention of authorities and has led to the implementation of many measures.
Crypto Assets Under Scrutiny
According to a news report from the local news agency Yonhap on August 22nd, the Cheongju administration has asked seven South Korean cryptocurrency exchanges to investigate the assets of thousands of tax evaders. It was reported that city officials ordered the investigation of the crypto assets of 8,520 users who owe at least 1 million won (750 dollars) in local taxes to platforms like Upbit and Bithumb.
The report states that after the investigation, Cheongju officials plan to seize the cryptocurrencies of tax offenders. According to the city administration, cryptocurrencies are increasingly being used as a means to conceal ownership in South Korea. This latest initiative aims to hold South Korean residents who evade tax responsibilities accountable.
South Korea is Just One of These Countries
In 2022, it was reported that the Cheongju administration seized the crypto assets of 17 individuals for overdue tax debts after obtaining the details of approximately 16,000 crypto investors’ crypto assets. Officials collected a total of 68 million won (51,000 dollars) from these 17 individuals.
In recent years, there has been an increase in demand for cryptocurrencies in South Korea as people try to avoid tax debts. The South Korean government seized cryptocurrencies worth 260 billion Korean won (180 million dollars) from tax evaders in 2022 and 2021. In 2021, the city administration of Seoul, the capital of South Korea, confiscated cryptocurrencies worth 25 billion won (22 million dollars) from individuals and company executives. These seizures came shortly after the South Korean government passed laws allowing regulators to seize cryptocurrencies like Bitcoin from tax offenders in 2021.
South Korea is not the only country seizing cryptocurrencies of tax evaders. Last year, Argentina’s tax authority seized more than 1,000 cryptocurrency wallets associated with the country’s taxpayers. According to Robert Wearing, the Deputy Chief Counsel of the IRS, the United States Internal Revenue Service also seizes cryptocurrencies of tax evaders.
