Paju City to Confiscate Cryptocurrency from 17 Tax Delinquents
Authorities in Paju, South Korea, are set to confiscate and sell cryptocurrency holdings of residents with outstanding tax debts. This initiative is part of a broader effort to ensure tax compliance as more citizens invest in digital assets.
Notices Sent to 17 Tax Delinquents
Paju officials have notified 17 individuals with unpaid taxes totaling 124 million Korean won (approximately $88,600). If debts are not settled by the end of November, their digital assets on exchanges will be seized and liquidated. This action reflects a commitment to tracking tax evaders and enforcing financial penalties.
This is not the first instance of crypto confiscation in Paju. On July 29, authorities seized 100 million won (approximately $72,000) in crypto from tax defaulters who had converted funds into digital assets to avoid detection.
The trend of using digital assets to hide wealth has increased in popularity across South Korea, prompting the government to enhance its monitoring capabilities for asset seizure.
A Wider Crackdown across South Korea
Paju's measures are part of a nationwide effort to reduce tax evasion linked to digital assets. In August, Seoul’s Gangnam District began investigating nearly 2,000 residents suspected of concealing assets in cryptocurrencies. Officials plan to use new crypto-monitoring tools to identify and confiscate tokens from tax delinquents.
Additionally, South Korea is leveraging technology to improve transparency in tax collection. On November 13, NongHyup Bank announced a collaboration with Fireblocks to explore tokenizing value-added tax (VAT) refunds. This pilot project aims to provide real-time tracking of assets, reducing errors and fraud risks.
Fireblocks co-founder Michael Shaulov emphasized that the project seeks to assign unique digital identifiers to assets, creating an immutable record throughout the asset lifecycle. This development is expected to streamline processes, lower costs, and enhance trust between financial institutions and clients.