In a bid to tackle tax evasion, officials in Paju, South Korea, are turning their attention to cryptocurrency. The city plans to seize crypto assets from residents with unpaid taxes.
Paju to Seize Crypto Assets of Tax Delinquents
Paju officials have announced plans to seize and sell the cryptocurrency of residents with outstanding taxes. Reports indicate that city officials have warned over 15 individuals who owe 124 million Korean won (approximately $88,600) in unpaid taxes. Authorities plan to seize their crypto assets if taxes remain unpaid by the end of November.
The Growing Challenge of Crypto and Taxes
South Korea has witnessed an increase in individuals using cryptocurrency to dodge financial responsibilities. The anonymous nature of blockchain transactions poses challenges to regulators. However, local governments like Paju are stepping up by confiscating crypto assets from tax dodgers.
Global Trends in Crypto and Tax Regulation
Interestingly, authorities in Detroit recently enabled residents to pay taxes in cryptocurrency. This move is part of Detroit's effort to become a web3 hub.
Actions by Paju's officials could set a precedent for other cities in South Korea and beyond. As cryptocurrencies become more mainstream, governments are likely to implement stricter measures to prevent tax evasion.
