The Gwacheon City in South Korea will roll out a virtual asset electronic seizure system next month to track and confiscate crypto from tax evaders.
The system will enable authorities to identify hidden assets and enforce tax collection, with full-scale seizures set to begin in the first half of the year, according to a translated local media report.
The city has identified 361 individuals who owe more than $2,060 (3 million won) in local taxes, with total arrears reaching about $12.9 million (18.8 billion won).
Officials plan to track these tax evaders by comparing their records with data from major domestic crypto exchanges.
While the South Korean government has postponed a planned 20% crypto tax until 2027, local agencies have been given the power to seize digital assets from tax evaders.
Gwacheon officials say their new electronic seizure system is crucial for closing tax loopholes and ensuring fairness.
“This measure is a decision to establish tax justice so that citizens who faithfully pay their taxes are not disadvantaged,” Gwacheon City Tax Division Chief Kang Min-ah told the local media outlet.
Gwacheon will reportedly issue advance warnings to encourage voluntary payment and avoid unnecessary disputes, before seizing any assets.
If residents fail to settle their dues within the…
