Paju, South Korea intensifies the campaign to crack down on tax evasion through cryptocurrency assets, sending seizure notices for 124 million won from 17 individuals, with a payment deadline by the end of November.
The government of Paju city, Gyeonggi province, South Korea, continues to intensify its campaign against tax evaders by targeting cryptocurrency assets. On November 18, according to Yonhap News, the city government officially sent notices to 17 individuals with tax debts totaling 124 million won (approximately 88,600 USD).
The notice specifies that if the debts are not fully paid by the end of November, their cryptocurrency assets stored on exchanges will be seized and liquidated. This move follows a similar action in July, when the city seized 100 million won (approximately 72,000 USD) in cryptocurrency from tax evaders.
Strengthening management, combating tax evasion through cryptocurrency
The continuous implementation of measures to seize cryptocurrency by the Paju government shows a strong determination to strengthen the management of digital assets and prevent the use of cryptocurrency as a tax evasion tool. City officials emphasize that this action aims 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 is becoming a popular means to evade tax obligations in South Korea. The Paju government also points out that the individuals targeted have the ability to pay but have intentionally converted assets into cryptocurrency to avoid tax obligations.
In addition to cracking down on tax evaders, there are also positive moves in applying blockchain technology to the traditional financial system. Specifically, NongHyup Bank signed a Memorandum of Understanding (MOU) with the digital asset platform Fireblocks on November 13, aiming to develop a prototype for value-added tax (VAT) refunds in tokenized form.
According to Mr. Michael Shaulov, co-founder and CEO of Fireblocks, tokenization 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 operational costs, and enhancing transparency, thereby strengthening trust between customers and banks.