Authorities in Paju, South Korea, have issued a stern warning to tax defaulters, threatening to seize and sell their cryptocurrency holdings if debts are not paid by the end of November.
Targeting 17 individuals who collectively owe 124 million Korean won (approximately $88,600), the city aims to combat the growing trend of using cryptocurrencies to evade taxes.
Officials emphasized that digital assets would not shield individuals from financial obligations, with strict penalties promised for those attempting to hide assets in crypto.
This crackdown follows similar actions in July when Paju authorities confiscated crypto assets worth 100 million won (around $72,000) from tax evaders.
Some residents reportedly convert funds into cryptocurrencies to dodge tax payments despite having the means to pay. These measures are intended to deter the misuse of digital currencies for tax avoidance and reinforce compliance.
In parallel, South Korea is advancing blockchain adoption in public services. NongHyup Bank has partnered with Fireblocks to tokenize value-added tax (VAT) refunds, creating a prototype system for real-time tracking and fraud reduction.
Fireblocks’ CEO Michael Shaulov highlighted the benefits of reduced operational costs and enhanced transparency through immutable digital records.
These initiatives reflect South Korea’s dual focus on regulating cryptocurrency misuse and leveraging blockchain technology for governance. Paju’s actions underscore the country’s determination to ensure tax compliance while fostering innovation in financial management.
