Local authorities in Paju, a city in South Korea’s Gyeonggi Province, are escalating efforts to recover unpaid taxes by pursuing cryptocurrency holdings of delinquent taxpayers.
The practice of evading taxes by converting funds into cryptocurrency has reportedly grown in South Korea. Paju authorities are tackling this head-on, sending a clear message to individuals using digital assets for illicit purposes.
Officials are preparing to confiscate and liquidate the cryptocurrency holdings of residents who fail to clear their debts.
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On November 18, notifications were issued to 17 individuals collectively owing 124 million Korean won, equivalent to approximately $88,600. These notices came with a warning to settle the dues by November’s end or risk losing cryptocurrency holdings stored on exchanges.
City representatives highlighted their determination to pursue tax defaulters, asserting that crypto assets will not be allowed as a shield for concealing wealth.
This initiative isn’t new to the city. In July, Paju officials seized cryptocurrencies valued at 100 million won (roughly $72,000) from tax delinquents. The recurring action indicates an ongoing struggle with taxpayers intentionally transferring funds to digital currencies to avoid meeting their financial responsibilities.
Authorities maintain that these measures target individuals with sufficient resources to pay their taxes but who convert assets into crypto to elude collection efforts.
In other news, Razzlekhan, involved in the infamous Bitfinex hack, has been sentenced to 18 months. What led to this conviction? Read the full story.
