Michaela
Incheon City’s Waterworks Headquarters has launched a special collection drive targeting unpaid water bills, warning that residents owing more than $360 risk having their virtual assets seized if they fail to settle their debts.
Key points:
- Incheon City will seize and liquidate crypto from residents with unpaid water bills over $360 if they ignore official warnings, starting with a one-month pilot on October 1.
- Residents targeted account for 34% of outstanding water fees, but installment and deferral options are available for those facing financial hardship.
- The initiative coincides with South Korea lifting a seven-year ban on recognizing crypto trading and brokerage firms as venture businesses, reflecting a broader regulatory shift toward integrating digital assets into the economy.
“For those who are in arrears on their livelihood, we will apply a deferral of payment and installment payment plan,” an Incheon city official said, according to a translated report from Gyeongin Bangsong. “Incheon is the first city to introduce a virtual asset tracking system,” the official added.
The program, the first of its kind in South Korea, will start on October 1 with a one-month pilot period. During this time, city officials plan to cross-check unpaid water bills against records from domestic cryptocurrency exchanges, including Upbit and Bithumb.
Residents with unpaid water bills who also hold cryptocurrency will initially receive formal warnings from city authorities. If they fail to respond, the city plans to seize and liquidate their digital assets.
The program will first target individuals with bills exceeding 500,000 won, roughly $360, who account for 34% of Incheon’s outstanding water fees, totaling an estimated 813 million won, or about $580,260. Those affected will have the option to settle their debts through installment payments.
This move in Incheon comes after South Korea lifted a seven-year ban on recognizing crypto trading and brokerage firms as venture businesses, reflecting a broader policy shift aimed at aligning the country’s startup ecosystem with global market trends.
South Korea’s Ministry of SMEs and Startups confirmed that the Cabinet has approved an amendment to the Enforcement Decree of the Special Act on Fostering Venture Businesses. The revision allows cryptocurrency trading and brokerage firms to be recognized as venture businesses, lifting a previous restriction, according to local media reports.
These moves spotlight South Korea’s evolving approach to digital assets, blending innovation with enforcement. As authorities experiment with both incentivizing crypto startups and using crypto for public debt collection, the country is charting a path that could influence global norms.
For residents and investors, the changes signal that crypto in South Korea is no longer purely speculative, it is increasingly entwined with everyday financial responsibilities and the state’s broader economic strategy.
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Michaela 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 Magazine and The Shib Daily are the official media and publications 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.
