South Korea Seizes $184 Million in Cryptocurrencies to Settle Tax Debts

South Korea Intensifies Cryptocurrency Seizures for Tax Recovery

South Korean authorities have seized cryptocurrencies valued at approximately $184 million over the past two years to settle tax debts. This crackdown, which began in 2021, aims to address tax evasion by targeting digital assets.

Largest Single Seizure and Provincial Distribution

The largest single seizure involved 12.5 billion Korean won ($8.87 million) from a tax evader holding Bitcoin and Ripple's XRP. Nearly a third of the total confiscated crypto, over 53 billion won, came from Gyeonggi Province, while Seoul and Incheon contributed 17.8 billion and 5.5 billion won, respectively.

Breakdown of Tax Arrears

Authorities reported confiscating over 176 billion won for national tax arrears and 84 billion won for local taxes, totaling 259.7 billion won. This reflects a growing focus on using cryptocurrency to address unpaid taxes.

Regulatory Compliance and Exchange Oversight

Crypto exchanges in South Korea are required to disclose consumer information to comply with tax laws. This follows heightened regulatory scrutiny after the collapse of Terra-Luna, leading to stricter regulations and increased investigations into exchanges.

Increased Regulatory Scrutiny

The South Korean government has emphasized the risks of cryptocurrency trading, passing regulations to tighten oversight. This move signals a broader global trend of cracking down on digital assets to ensure tax compliance and regulatory adherence.

This enforcement underscores the importance of tax compliance in the cryptocurrency sector and highlights South Korea's proactive approach to managing digital asset-related tax evasion.