Can’t Pay Taxes? South Korea City Will Sell Your Crypto to Settle Debts

The city of Paju in Gyeonggi Province, South Korea, has announced plans to seize and sell the cryptocurrency holdings of 17 individuals who collectively owe 124 million Korean won (approximately $88,600) in local taxes.

Tax Enforcement Through Crypto Seizure

According to local media, city officials have sent notices to the delinquent taxpayers, warning them to settle their debts by the end of November. If payments are not made, the authorities will confiscate the virtual assets stored on cryptocurrency exchanges and sell them to recover the unpaid taxes.

This is the first time a local government in South Korea will directly liquidate crypto assets for tax collection, setting a potential precedent for future enforcement actions.

Paju officials have emphasized their commitment to tracking down crypto holdings to ensure compliance. They pointed out that some individuals deliberately converted their wealth into digital assets to avoid tax obligations. The city previously confiscated 100 million won ($72,000) in crypto from tax debtors in July 2024, further demonstrating its resolve to tackle evasion through innovative methods.

South Korea Cracks Down on Crypto Abusers

This development sheds light on the increasing use of cryptocurrency as a means to hide assets, a trend that South Korean authorities have been addressing through enhanced regulatory measures.

In October, South Korea’s Financial Services Commission announced the creation of a crypto monitoring system to combat financial crime. The system is designed to ensure transparency and compliance, particularly in light of growing concerns over tax evasion and money laundering linked to digital assets.

As South Korea continues to strengthen its regulatory framework for cryptocurrencies, Paju’s enforcement action could serve as a model for other local governments seeking to address tax evasion.

Recently, Upbit, the South Korean cryptocurrency exchange, faced significant pressure from the Financial Intelligence Unit (FIU) for alleged large-scale Know Your Customer (KYC) violations. Authorities reportedly flagged 500,000 to 600,000 cases of insufficient customer verification, raising concerns over compliance with anti-money laundering regulations. The investigation could result in heavy fines and potentially jeopardize Upbit’s license renewal.

Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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