In the city of Jeju, South Korea, local authorities have launched a large-scale campaign to seize digital assets from citizens who have significant tax debts. A recent audit revealed 49 individuals who own cryptocurrencies and have tax arrears totaling over 14 million USD.
This is reported by Business • Media
Mechanism for Identifying Debtors and the Role of Cryptocurrency Exchanges
The asset verification covered over 2,900 debtors who have not paid taxes exceeding 1 million won, approximately 750 USD. The total amount of unpaid taxes reached 19.7 billion won, equivalent to over 14 million dollars. To identify the owners of digital assets, the authorities collaborated with four major cryptocurrency platforms: Bithumb Korea, Dunamu (Upbit), Coinone, and Korbit. As a result, the presence of cryptocurrencies was confirmed for 49 debtors, with a total asset value of about 230 million won (around 167,000 USD).
Authorities’ Plans for Debt Collection through Cryptocurrency Seizures
The Jeju authorities intend to officially designate cryptocurrency exchanges as “third-party debtors” and initiate the process of seizing digital assets to recover debts. It is noted that these actions aim to increase revenue for the city budget and combat tax evasion through the use of cryptocurrencies.
“We will continue to take strict measures against individuals attempting to hide income using cryptocurrencies. By employing AI-based analytics, we will enhance the detection of major debtors and ensure revenue for the city budget.”
Previously, several approaches to regulating stablecoins have already been proposed in South Korea, indicating a growing focus on the digital asset market in the country.