Seoul Seizes Tax Dodgers' Crypto From Exchanges: Report

The department has seized around 25 billion won ($22 million) in digital assets from 676 of the alleged tax evaders.

AccessTimeIconApr 23, 2021 at 11:57 a.m. UTC
Updated Sep 14, 2021 at 12:45 p.m. UTC

Seoul has reportedly become the first city in South Korea to begin cracking down on individuals who are allegedly hiding their assets digitally using cryptocurrency.

According to a report by the Yonhap News Agency on Friday, the city's tax collection department discovered cryptocurrencies being held in three crypto exchanges belonging to 1,556 individuals and company heads.

The department has since seized around 25 billion won ($22 million) in digital assets from 676 of the alleged perpetrators.

The 676 individuals reportedly owed the local government 28.4 billion won ($25.4 million) in overdue taxes. Of those 676, 118 of individuals have paid back 1.26 billion won ($1.1 million).

According to a statement from the city, many are asking the city to allow them to pay their taxes rather than sell their seized crypto. "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 statement said.

The city government will continue to pursue the remaining 890 people in order to reclaim any outstanding taxes being held in cryptocurrencies.

On Monday, the country's Office for Government Policy Coordination announced it will begin cracking down on “illegitimate crypto businesses” as well as all forms of money laundering and scams involving crypto. The move is in line with the recent pursuits by the country's financial regulators targeting illicit activity involving digital assets.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.