South Korea’s Jeju City targets crypto holdings of alleged tax dodgers

Tax officials in Jeju City, the capital of the South Korean island province of Jeju, have reportedly started the process of freezing and seizing the crypto of those it believes to be dodging tax requirements.

The move is part of a broader operation that saw authorities investigate 2,962 individuals in arrears for a total of 19.7 billion won ($14.2 million), to confirm if they hadcrypto holdingsthat could be seized to settle the outstanding balance owed,accordingto a report on Saturday by local media outlet Newsis.

During the investigation, tax officials combed through data from majorSouth Korean crypto exchangesBithumb, Dunamu’s Upbit, Coinone and Korbit, finding 49 of the alleged tax dodgers had combined crypto holdings valued at over $166,269.

Jeju City’s Tax Division has designated the exchanges as third-party debtors to start seizing and securing the coins to help pay some of the debt owed by the alleged tax evaders.

Tax Division used AI to analyze crypto transaction data

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Jeju is South Korea’s largest island and a tourist hotspot. It has a history with crypto initiatives,including launching non-fungible token touristcards and ablockchain-based COVID-19contact tracing app in 2021.

Jeju City Tax Division Chief Hwang Tae-hoon said the city will “continue to strengthen our response to tax delinquency using new assets such as virtual assets to thoroughly uncover hidden tax sources,” according to Newsis.

He added that the Tax Division will also continue to “collect high-value tax delinquents through AI-based information analysis, striving to secure substantial tax revenue and foster a culture of honest tax payment.”

Crypto exchangeusers in South Korea have surpassed 16 million, or more than 30% of the country’s population, who flocked to the crypto market after it saw a boost from US President Donald Trump’s election win in November.

Crypto of alleged delinquents on the chopping block

The South Korean governmentenacted laws allowingregulators to seize cryptocurrencies like BitcoinBTC$115,260BitcoinChange (24h)2.39%Market Cap$2.29TVolume (24h)$32.73BView Morefrom tax delinquents in 2021.

Related:Australian court ruling could lead to $640M in Bitcoin tax refunds

Authorities in the South Korean city of Paju, northeast of the capital Seoul,announced plans to seize and sell the crypto holdingsof citizens with unpaid taxes in November last year.

Meanwhile, in 2022 and 2021 combined, the South Korean governmentconfiscated$180 million worth of cryptocurrencies from tax evaders.

In 2021, the city administration of Seoul alsoseized crypto worth$22 million from individuals and company heads who were allegedly tax delinquents.

Magazine:South Koreans dump Tesla for Ethereum treasury BitMine: Asia Express

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