Paju, South Korea steps up tax evasion crackdown on cryptocurrency assets, issuing confiscation notices of 124 million won from 17 individuals, with the payment deadline by the end of November.
The Paju City government in Gyeonggi Province, South Korea, continues to intensify its crackdown on tax evaders by targeting cryptocurrency assets. On November 18, according to Yonhap News, the city government has officially sent notices to 17 individuals who owe taxes, totaling 124 million won (approximately $88,600).
The notice states that if the outstanding taxes are not fully paid by the end of November, their cryptocurrency assets stored on the trading platforms will be confiscated and liquidated. This action follows a similar move in July, when the city confiscated 100 million won (around $72,000) in cryptocurrency from tax evaders.
Strengthening management, combating tax evasion through cryptocurrency
The Paju government's continuous implementation of cryptocurrency confiscation measures demonstrates its strong determination to enhance the management of digital assets and prevent the use of cryptocurrency as a tool for tax evasion. City officials emphasized that this action is intended to send a clear message that cryptocurrency is not a safe haven for illegal assets, and tax evasion will be dealt with severely.
According to Yonhap News, cryptocurrency has become a common means of avoiding tax obligations in South Korea. The Paju government also pointed out that the targeted individuals have the ability to pay but have deliberately converted their assets into cryptocurrency to evade their tax obligations.
Alongside the crackdown on tax evaders, there are also positive developments in the application of blockchain technology in the traditional financial system. Specifically, NongHyup Bank signed a Memorandum of Mnemonics (MOU) with the digital asset platform Fireblocks on November 13, to develop a prototype for value-added tax (VAT) refunds in the form of Tokenized assets.
According to Michael Shaulov, co-founder and CEO of Fireblocks, Tokenized technology allows for the assignment of a unique digital identifier to assets, enabling real-time tracking from issuance to payment, eliminating the risk of manual errors or fraud, reducing operating costs, and enhancing transparency, thereby strengthening trust between customers and the bank.
