South Korean ‘Crypto Tax Crackdown’ Hits Yeongcheon: Authorities Target Tax Delinquents
The South Korean “crypto tax crackdown” has made its way to the city of Yeongcheon in North Gyeongsang Province, putting the city in the spotlight for its intensive collection activities on unpaid tax bills.
Local authorities in Yeongcheon have been granted powerful new software tools that allow them to comb through domestic crypto exchange data in search of residents’ details. This data is then used to match unpaid tax bills with corresponding crypto wallets and associated bank accounts. The authorities have been given the power to freeze wallets, seize tokens, and even liquidate coins from “tax dodgers.”
The city of Yeongcheon has announced that they will continue their campaign until June 28, with license plate retention teams patrolling the streets to check for tax delinquents. Vehicles belonging to tax delinquents will be towed and impounded, with the city stating that they will immediately sell the vehicles at public auction if outstanding tax bills are not settled.
Some citizens have claimed they do not have enough funds to pay their tax bills, but the city plans to verify these claims by checking their crypto wallets and investments in secondary financial institutions. The recent rise in Bitcoin prices has prompted the city to take action, as reinvigorated markets make it more likely for tax delinquents to invest in cryptoassets.
Oh Young-ho, the head of Yeongcheon’s Taxation Department, expressed gratitude to citizens who faithfully pay their taxes despite economic downturns. The city aims to boost local tax revenues by taking strong measures against repeat tax offenders.
This crackdown on crypto tax evasion is part of a nationwide effort, with tax officials in Pohang, in the same province, seizing crypto from over 5,000 “local tax dodgers” earlier this month. In 2023, tax officials nationwide confiscated almost $29 million worth of coins and fiat from crypto wallets.
The South Korean “crypto tax crackdown” continues to make waves across the country, with authorities taking decisive action against those who attempt to evade their tax obligations through cryptocurrency investments.
