Authorities in Paju, a city in South Korea’s Gyeonggi Province, are ramping up efforts to collect unpaid taxes by targeting residents who use cryptocurrency to evade payment. Local officials have issued warnings to 17 individuals with outstanding tax debts amounting to 124 million Korean won (approximately $88,600).
According to a November 18 report by Yonhap News, the city has notified these tax delinquents that their cryptocurrency holdings on exchanges will be seized and sold if the debts remain unpaid by the end of November.
City officials explained,
“We have sent virtual asset transfer and sale notices to 17 people who have so far notified them of their unpaid local taxes, totaling 124 million won,”
and
“If they do not pay their unpaid taxes by the end of this month, we plan to transfer the virtual assets they own, totaling 50 million won, to the city’s account and sell them.”
Officials stressed their determination to track down hidden assets and impose strict penalties, emphasizing that digital currencies cannot be used as a shield against tax obligations.
“This is a clear message to taxpayers that they cannot hide their assets, and we will track down their assets to the end and enforce penalties,”
city officials said.
This isn’t Paju’s first encounter with crypto-related tax evasion. In July, the city confiscated 100 million won (around $72,000) in crypto assets from tax defaulters who had deliberately converted funds into digital currencies to avoid payments. Authorities believe these actions reflect a growing trend among South Koreans seeking to exploit the relative anonymity of cryptocurrencies to bypass financial accountability.
Officials described the move as part of a broader crackdown to ensure compliance and discourage individuals from leveraging digital assets to sidestep their responsibilities.
This move comes as South Korea intensifies its efforts to combat financial crimes, with Finance Minister Choi Sang-Mok announcing plans to introduce a reporting mandate for businesses handling cross-border cryptocurrency transactions. The initiative, discussed at a recent G20 meeting in Washington, aims to prevent tax evasion and address foreign exchange crimes.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
