South Korea's Jeju City Seizes $165,000 in Crypto from 49 Tax Delinquents

Generated by AI AgentCoin World
Monday, Aug 18, 2025 4:26 pm ET1min read
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Aime RobotAime Summary

- Jeju City targets crypto assets of 49 tax delinquents, using AI to trace hidden holdings and recover $165K+ in unpaid taxes.

- The initiative aims to recoup $14.2M from 2,962 residents, part of South Korea’s national crackdown seizing $180M in crypto since 2021.

- Regulators warn crypto holders face asset seizures if they evade taxes, highlighting stricter oversight as digital adoption grows.

- Balancing innovation with compliance remains critical for the sector’s stability and growth in Korea.

Jeju City, South Korea, has intensified its efforts to recover unpaid local taxes by targeting cryptocurrency assets held by alleged tax delinquents. Tax authorities identified 49 individuals with undisclosed crypto holdings exceeding $165,000 and are now seeking to freeze and seize these assets to recover overdue payments. The broader initiative aims to recoup 19.7 billion won ($14.2 million) from 2,962 residents who owe unpaid local taxes such as acquisition tax. The investigation, which utilized data from four major local exchanges—Bithumb Korea, Doo Tree (Upbit), Coinone, and Korbit—enabled officials to trace hidden crypto assets and enforce legal procedures for asset seizure [2].

To improve the accuracy and efficiency of the investigation, the city’s tax department deployed artificial intelligence (AI) tools to analyze transaction records and identify undeclared assets. Hwang Tae-hoon, head of the Taxation Division, emphasized that leveraging AI and virtual resources is key to uncovering high-value tax evasion and reinforcing compliance. The use of AI is part of South Korea’s broader strategy to strengthen governance in the digital finance sector and enhance tax enforcement [2].

This crackdown is part of a national trend in South Korea, where authorities have increasingly targeted crypto assets linked to tax evasion. Since 2021, the government has confiscated $180 million in cryptocurrencies from tax delinquents. In 2021 alone, the Gangnam District of Seoul recovered over $144,000 in crypto assets, while Paju and other cities have also taken similar enforcement actions [2]. These measures reflect growing regulatory scrutiny as digital asset adoption expands in the country, with over 16 million crypto users—more than 30% of the population—raising concerns over compliance and transparency.

The recent enforcement actions underscore the risks for crypto holders in jurisdictions with strict and evolving regulations. Failure to meet tax obligations may result in asset seizures, signaling a clear message from authorities that cryptocurrencies cannot serve as a safe haven for tax evasion. As South Korea continues to refine its regulatory framework, balancing innovation with oversight will be critical for the long-term stability and growth of the crypto sector [2].

Source:

[1] Cointelegraph (https://cointelegraph.com/news/south-korea-jeju-city-targets-crypto-holdings-alleged-tax-dodgers)

[2] Live (https://www.livebitcoinnews.com/south-korean-island-targets-crypto-tax-evaders/)

[3] FinanceFeeds (https://financefeeds.com/jeju-city-in-south-korea-targets-crypto-assets/)

[4] TradingView (https://www.tradingview.com/news/cointelegraph:dfcb2476b094b:0-south-korea-s-jeju-city-targets-crypto-holdings-of-alleged-tax-dodgers/)

[5] Mitrade (https://www.mitrade.com/insights/news/live-news/article-3-1048215-20250818)

[6] CoinCentral (https://coincentral.com/jeju-city-seizes-cryptos-from-49-tax-delinquents-amid-ongoing-investigation/)

[7]

Bitcoin
Insider (https://www.bitcoininsider.org/article/283348/jeju-city-tax-officials-begin-seizing-crypto-alleged-tax-evaders)

[8] CryptoRank (https://cryptorank.io/news/tag/south-korea)

[9] CoinLive (https://www.coinlive.com/news-flash/873016)