Korea’s Jeju City to Seize Crypto of Alleged Tax Evaders – Crypto News

Tax officials in Jeju City, the capital of the South Korean island province of Jeju, have reportedly started the process of freezing and seizing the crypto of those it believes to be dodging tax requirements. 

The move is part of a broader operation that saw authorities investigate 2,962 individuals in arrears for a total of 19.7 billion won ($14.2 million), to confirm if they had crypto holdings that could be seized to settle the outstanding balance owed, according to a report on Saturday by local media outlet Newsis.

During the investigation, tax officials combed through data from major South Korean crypto exchanges Bithumb, Dunamu’s Upbit, Coinone and Korbit, finding 49 of the alleged tax dodgers had combined crypto holdings valued at over $166,269.

Jeju City’s Tax Division has designated the exchanges’ third-party debtors to start seizing and securing the coins to help pay some of the debt owed by the alleged tax evaders. 

Tax Division used AI to analyze crypto transaction data

Jeju is South Korea’s largest island and a tourist hotspot. It has a history with crypto initiatives, including launching non-fungible token tourist cards and a blockchain-based COVID-19 contact tracing app in 2021. 

Jeju City Tax Division Chief Hwang Tae-hoon said the city will “continue to strengthen our response to tax delinquency using new assets such as virtual assets to thoroughly uncover hidden tax sources,” according to Newsis.

He added that the Tax Division will also continue to “collect high-value tax delinquents through AI-based information analysis, striving to secure substantial tax revenue and foster a culture of honest tax payment.”