South Korean city of Cheongju enforces tax law by selling seized cryptocurrency from delinquents. The city of Cheongju in South Korea’s North Chungcheong Province has sold cryptocurrency seized from high-value and habitual local tax delinquents. This action, finalized in late 2024, represents the first completed sale since the city initiated its seizure program in 2021, signaling a maturing approach to governing digital asset ownership. The city government collected approximately 21 million won, equivalent to $15,200, by liquidating digital assets from 12 individuals.
Authorities executed these sales through the major South Korean cryptocurrency exchange Upbit. Furthermore, the city is currently in the process of selling assets seized from eight additional delinquents on another premier platform, Bithumb. This two-exchange strategy demonstrates a practical understanding of market liquidity and regulatory compliance.
Initial yield from the sale was 21 million won (about $15,200) from 12 cases, with the action resting on the Local Tax Collection Act enabling seizure of property. The move aligns with Korea’s rapidly evolving crypto framework, including stringent exchange rules implemented since 2017 and a crypto taxation regime that imposes a 20% tax on trading profits above 2.5 million won. Local governments like Cheongju now possess the tools to identify, seize, and liquidate digital assets through licensed exchanges, signaling a shift toward enforceable digital finance. This cooperation with licensed exchanges provides a clear on-ramp for enforcement and underscores crypto as taxable, seizable property under Korean law.
Leave a Reply