South Korean City Targets Tax Debtors' Crypto Holdings

Paju, a city in South Korea’s Gyeonggi Province, is cracking down on tax evaders hiding assets in crypto. Authorities announced plans to seize and sell cryptocurrency from people who have unpaid taxes. 

Paju City Takes Action Against Tax Delinquents

On November 18, Paju city officials revealed that 17 individuals owe a total of 124 million Korean won ($88,600) in unpaid taxes. Notices were sent warning them that their crypto holdings would be seized and sold if taxes aren’t paid by the end of November. 

This is not the first time Paju has seized crypto from tax delinquents. In July, the city seized about $72,000 worth of crypto from people avoiding tax payments. 

South Korea Tackles Tax Evasion with Crypto Seizures

Crypto is becoming a popular way for South Koreans to hide money from authorities. The use of digital currencies for evading taxes is growing, but authorities are becoming more aggressive in tracking down these assets. 

Paju’s decision to seize crypto shows that no one is safe, even when hiding assets in digital wallets. At the same time, South Korea is experimenting with new ways to streamline its tax system. 

NongHyup Bank is partnering with Fireblocks to tokenize VAT refunds, which could make tax payments faster and more transparent. These initiatives represent a shift in how South Korea plans to deal with the growing use of digital currencies in the financial sector.

As more cities follow Paju’s example, crypto may no longer be a safe haven for tax evaders. Authorities are ready to seize crypto holdings from those who try to use it to avoid their tax obligations.