The tax department of the Seoul metropolitan government in South Korea has reportedly seized cryptocurrencies worth about $25 million from hundreds of crypto investors with delinquent taxes. The cryptocurrencies, including bitcoin, were seized from three exchanges. The tax authority is now going after hundreds more taxpayers who are delinquent on paying their taxes.
Crypto Seizure for Tax Payments
The Seoul metropolitan government announced Friday that it has seized cryptocurrencies from hundreds of individuals who are delinquent on their tax payments, Yonhap reported.
Cryptocurrencies belonging to 1,566 individuals, including heads of companies, have been identified by the city government’s tax collection department at three cryptocurrency exchanges. So far, the tax authority has seized the coins from 676 people who owe the government 28.4 billion won (approximately $25.47 million) in overdue taxes. It will soon go after the crypto assets of the other 890 people.
Since the crypto seizure, 118 taxpayers have paid back 1.26 billion won, the city government said, elaborating:
We are continually being asked by delinquent taxpayers to refrain from selling their cryptocurrencies as they will pay their taxes.
“We believe the taxpayers expect the value of their cryptocurrencies to increase further due to the recent spike in the price of cryptocurrencies and have determined they will gain more from paying their delinquent taxes and having the seizure released,” the government described.
The city government gave an example of the head of a hospital whose cryptocurrencies were confiscated. He asked the authorities not to sell his coins and immediately paid 580 million won out of the 1 billion won he owed in unpaid taxes and provided security for the rest.
Similarly, another taxpayer asked the government not to sell his seize cryptocurrencies worth 3 million won, pleading that in two years, their value will grow substantially and will more than cover his delinquent tax of 20 million won.
According to the tax authority, the most popular cryptocurrency among delinquent taxpayers is bitcoin (19%), followed by Dragonvein and XRP, both at 16%. The next most popular crypto is ethereum (10%) and then stellar (9%).
What do you think about the local South Korean tax authority seizing cryptocurrencies for tax payments? Let us know in the comments section below.