Jeju City, in the South Korean island province of Jeju, has completed a crypto-themed investigation of almost 3,000 residents with unpaid tax bills, seizing Bitcoin (BTC) and other coins from dozens of individuals.
The South Korean media outlet Newsis reported that tax delinquents in the city have been “lining their pockets with cryptoassets.”
Jeju Crypto Crackdown on Tax Evaders
Jeju City authorities announced on August 16 that tax officials have completed a “comprehensive investigation.” Tax officials wanted to determine if 2,962 individuals in the city had crypto holdings.
South Korean law allows national and local tax bodies to require domestic crypto exchanges to hand over data on customers they suspect of tax evasion.
The individuals in question all owed the city more than 1 million won (over $719) in unpaid tax levies and fines.
In total, the individuals’ outstanding tax bills amounted to 19.7 billion won ($14,171,845) in arrears.
The investigation saw tax officials comb through data handed over by the country’s four biggest crypto exchanges: Bithumb, Dunamu’s Upbit, Coinone, and Korbit.
City Starts Seizing Coins
The investigators confirmed that 49 of the individuals held coins in crypto wallets on the exchanges. The total value of this crypto was 230 million won ($165,458), the city added.
The city has since used its power to designated the exchanges as third-party debtors and has “begun procedures to freeze and seize their assets.”
Jeju officials are likely to then present the individuals with an ultimatum, telling them that if they do not immediately settle their bills, the city will move to liquidate the coins.
The authorities also revealed that they used AI-powered tools to help them identify tax evaders and “hidden” cryptoassets. Jeju City’s tax chief Hwang Tae-hoon said:
“We will continue to bolster our response to tax evasion to uncover hidden assets like crypto. We will do our best to track down assets belonging to high-value tax delinquents. We will use AI-based information analysis. This will help us boost tax revenues and foster a culture of honest tax payment.”
A similar drive in Seoul’s affluent Gangnam District has seen tax officials recoup over $144,000 so far this year.
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