South Korea Expands Crypto Seizures to Enforce Unpaid Taxes
Seoul tax authorities have started confiscating digital assets from residents who have not paid local taxes. Millions of won in cryptocurrency have been seized after tracing wallet activities linked to unpaid accounts.
- Enforcement Systems: Local governments are deploying systems that automatically identify and freeze wallets of tax delinquents. Assets linked to exchanges can be frozen or liquidated for those exceeding certain debt thresholds.
- Cold Wallets: It is unclear if enforcement can extend to cold wallets, which would likely require legal action or taxpayer disclosure.
- Policy Direction: This initiative is part of South Korea's effort to integrate digital assets into its tax system. Authorities use blockchain analytics and exchange cooperation, preparing for a 20% crypto income tax starting in 2027.