Jeju City, the capital of South Korea’s Jeju Province, has concluded an extensive investigation into the cryptocurrency holdings of alleged crypto tax delinquents, aiming to recover unpaid taxes through the seizure of digital assets.
Local news outlet Newsis reported that Jeju City examined the cryptocurrency holdings of 2,962 individuals with tax arrears exceeding 1 million won, totaling 19.7 billion won. The investigation leveraged data from four major South Korean exchanges: Bithumb, Dunamu’s Upbit, Coinone, and Korbit.
Authorities confirmed that 49 individuals possessed virtual assets totaling 230 million won. Jeju City has designated the cryptocurrency exchanges as third-party debtors and initiated measures to seize and secure the assets.
“We will continue to strengthen our response to tax delinquency using new assets such as virtual assets to thoroughly uncover hidden tax sources,” Jeju City Tax Division Chief Hwang Tae-hoon stated.
“We will do our best to track down and collect high-value tax delinquents through AI-based information analysis, striving to secure substantial tax revenue and foster a culture of honest tax payment.”
Crypto Of Alleged Delinquents On The Chopping Block
The South Korean government enacted laws allowing regulators to seize cryptocurrencies like Bitcoin (BTC) from tax delinquents in 2021.
Authorities in the South Korean city of Paju, northeast of the capital Seoul, announced plans to seize and sell the crypto holdings of citizens with unpaid taxes in November last year.
Meanwhile, in 2022 and 2021 combined, the South Korean government confiscated $180 million worth of cryptocurrencies from tax evaders.
In 2021, the city administration of Seoul also seized crypto worth $22 million from individuals and company heads who were allegedly tax delinquents.
Staying Compliant: Why Crypto Holders Must Pay Attention to Crypto Tax
South Korea’s recent crackdown on delinquents avoiding crypto tax emphasizes a critical point for crypto holders and other cryptocurrency investors: responsible management of digital assets is essential.
Accurately reporting trades, declaring income, and keeping thorough records isn’t just about compliance, it’s a safeguard against potential fines, legal action, and disruptions to one’s financial standing.
As the global adoption of cryptocurrencies accelerates, governments are increasingly enforcing regulations to ensure transparency and accountability, making it even more important for investors to follow proper tax practices.
Staying compliant allows holders to participate confidently in the growing mainstream crypto ecosystem, supports broader adoption, and helps maintain the integrity and security of digital asset markets.
