Tax officials in Jeju, the capital of the South Korean island province, have started the process of freezing and seizing cryptocurrency from those suspected of tax evasion. This initiative is part of broader measures to combat tax evaders in the country.
Freezing Cryptocurrency in Jeju
As part of the new operation, data was analyzed for 2,962 individuals collectively owing 19.7 billion won ($14.2 million). During the investigation, tax officials sought to identify any cryptocurrency holdings that could be seized to settle the owed amounts.
Use of Technology for Data Analysis
The Jeju Tax Division utilized data from major South Korean crypto exchanges, such as Bithumb, Upbit, Coinone, and Korbit. As a result, 49 alleged tax dodgers were found to possess combined crypto holdings valued at over 230 million won ($166,269). Jeju Tax Division Chief Hwang Tae-hoon stated that the city will "continue to strengthen our response to tax delinquency using virtual assets."
Broad Measures Against Tax Evaders
The South Korean government enacted laws allowing regulators to confiscate cryptocurrencies from tax evaders in 2021. In 2021 and 2022, the South Korean government confiscated cryptocurrency worth up to 260 billion won ($180 million) from tax evaders. The city administration of Seoul also conducted seizures of crypto worth 25 billion won ($22 million) from individuals and company heads accused of tax delinquency.
The measures to freeze and seize cryptocurrency in Jeju reflect broader efforts by South Korea to tackle tax evasion, especially in the context of increasing interest in cryptocurrency in the country.
