- Jeju City tax officials have started freezing and seizing cryptocurrency from alleged tax evaders.
- The investigation reviewed nearly 3,000 individuals for a total tax debt of $14.2 million.
- Authorities identified 49 people holding a combined $166,000 in crypto assets across major exchanges.
- The city’s tax division used Artificial Intelligence to analyze exchange data and track assets.
- South Korean regulators have the legal power to seize cryptocurrency from tax delinquents since 2021.
Tax authorities in Jeju City, South Korea, have begun freezing and confiscating cryptocurrency from residents suspected of evading taxes. Officials launched this effort as part of a wider operation targeting nearly 3,000 people who collectively owe about $14.2 million in unpaid taxes.
Investigators examined data provided by the country’s largest crypto exchanges, including Bithumb, Upbit, Coinone, and Korbit. They found that 49 individuals among the suspected tax evaders held digital assets worth over $166,000. According to a report from local media outlet Newsis, the city designated these exchanges as third-party debtors, a legal step allowing them to freeze and secure the assets in question.
The Jeju City Tax Division used artificial intelligence to analyze cryptocurrency transaction data. Division Chief Hwang Tae-hoon stated, “We will continue to strengthen our response to tax delinquency using new assets such as virtual assets to thoroughly uncover hidden tax sources,” as quoted by Newsis. He added that more high-value tax delinquents will be pursued using AI-based data analysis in order to increase tax collections and encourage honest payments.
Jeju Island, known for its tourism and history of digital currency programs, has supported blockchain-based systems in public services. In 2021, the city introduced a blockchain-powered COVID-19 contact tracing app and offered non-fungible token (NFT) tourist cards.
More than 16 million South Koreans—over 30% of the population—have registered accounts with cryptocurrency exchanges, partly due to market enthusiasm following the U.S. presidential election in November. Under current South Korean laws, authorities have been allowed to seize cryptocurrencies like Bitcoin from tax delinquents since 2021. For example, the city of Paju began seizing digital assets from tax defaulters last year, and from 2021 to 2022, government agencies confiscated approximately $180 million in crypto from those who failed to pay taxes. In 2021, Seoul officials seized $22 million from individuals and company executives accused of tax evasion.
For additional background and images, refer to Newsis and the shared Jeju City photo source.
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