According to a publication by Yonhap, a local news outlet, authorities in the South Korean city of Cheongju are planning to confiscate cryptocurrency from individuals who have unpaid taxes.
Contents of the publication
The Cheongju’s government has requested crypto asset data from seven crypto exchanges, including nationally popular Upbit and Bithumb. They want information about 8,520 city residents who owe more than 1 million won (≈$750) in unpaid taxes.
Furthermore, the authorities plan to directly confiscate equivalent amounts of cryptocurrency from the offenders' accounts to offset their debts. There are no details on how exactly this will be carried out. Perhaps, such information is aimed at encouraging citizens to come to their senses and pay their taxes before it is too late.
What else is known
As a Yonhap’s reporter states, this is not the first time when such practices have occurred in South Korea. For instance, last year, authorities in the same city received information from exchanges about 16,000 crypto investors and collected overdue taxes from 17 individuals in the amount of 68 million won (≈51,000 USD).
Earlier, between 2021 and 2022, the South Korean government confiscated 260 billion Korean won (≈ $195 million) worth of cryptocurrencies due to tax arrears.
South Korea, as well as other Asian countries, is actively addressing the issue of cryptocurrencies and introducing new regulatory measures.
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