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South Korea Province Seizes $890K in Crypto from Tax Evaders Targeting $136 Million by Year-End
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South Korea Targets Tax-Evading Crypto Holders in $890K Asset Seizure
North Gyeongsang Province has ramped up its efforts to collect unpaid taxes by targeting the crypto holdings of residents.
In a recent move, the province seized $890,000 worth of crypto assets from the wallets of tax-delinquent residents, highlighting the serious measures being taken against non-payers.
Authorities aim to retrieve a total of $136 million in tax arrears before the year ends, showing no signs of slowing down as the crackdown intensifies.
Will the Crypto Crackdown Recover $136 Million?
North Gyeongsang Province, along with its 22 cities and counties, is leading a widespread campaign to recover unpaid taxes.
The province has already successfully collected over $35 million of its target by August this year, with the remaining $101 million still outstanding.
From 14 October to 13 December, the province will be in full force with a two-month-long campaign to tackle the issue head-on.
North Gyeongsang Province is a northeastern South Korean province bordering North Korea, Ulsan, Daegu, and Chungcheongbuk-do.
A "Local Tax Arrears Collection Team," comprising local leaders and tax officials, has been formed to streamline these efforts.
These teams are tasked with implementing "systematic and comprehensive" tax collection operations, leaving no stone unturned to hit the $136 million goal.
How Does South Korea Handle Tax-Evading Crypto Holders?
South Korean law gives local tax authorities the power to request data from domestic crypto exchanges, allowing them to track crypto wallets associated with unpaid taxes.
These authorities match the wallet details with tax records to identify residents who have evaded their tax obligations.
Residents who are caught are given a stark choice: pay their outstanding taxes in fiat currency, or have their crypto holdings sold off.
In past cases, governments have swiftly sold Bitcoin, Ethereum, and other high-value altcoins, seizing millions of dollars from tax evaders.
“Pay up, or we’ll sell your crypto” has become a recurring ultimatum, reminding tax dodgers that authorities mean business.
Seizure and Liquidation: What Happens to the Crypto?
Once the crypto assets have been seized, North Gyeongsang Province doesn’t hesitate to liquidate them.
The province has made it clear that the sale of seized assets will proceed quickly, with any proceeds going towards settling the tax debt.
In cases where residents fail to pay their taxes in fiat, their coins will be sold on the exchanges from which they were seized, ensuring the government recoups the owed amounts.
This aggressive strategy mirrors similar actions taken by other provinces and metropolitan cities across South Korea, where authorities have already liquidated millions of dollars in crypto holdings, reflecting the seriousness of their crackdown on tax evasion.
An Escalating Trend Across South Korea
The move by North Gyeongsang Province is part of a broader national effort to combat tax evasion through crypto holdings.
Provinces and cities throughout South Korea have been ramping up enforcement efforts, and with millions of dollars in assets already seized and sold, it is clear that local governments are not afraid to take bold action.
Tax-delinquent crypto holders across the country are feeling the heat as authorities intensify these measures, signalling that no one is immune from paying their share.
With North Gyeongsang Province pushing hard to meet its ambitious $136 million target by year-end, crypto holders have no room for complacency.
The crackdown is on, and the message is clear: settle your debts, or risk losing your digital assets.
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