According to local news site mk.co.kr, the South Korean government does confiscated over 260 billion Korean won ($180 million) in cryptocurrency tax arrears over the past two years. The country’s politicians enacted regulations allowing digital currencies to be seized for tax offenses and began enforcing them last year.
One person living in Seoul, nicknamed “Person A,” had 1.43 billion won in tax arrears and authorities seized his cryptocurrency exchange account. The account contained 12.49 billion won of digital assets spread across 20 coins and tokens, including 3.2 billion won in Bitcoin and 1.9 billion won in Ripple.
After the seizure, “Person A” allegedly paid the arrears and asked to stop the sale of the seized property. If tax arrears are not settled, South Korean law allows authorities to sell seized cryptocurrencies at market value.
South Korea is one of the most popular countries in the world for crypto activity, with its digital currency market growing at $45.9 billion last year. Crypto-friendly Yoon Suk-Yeol won the country’s presidential election in March, and the coin used to mint his signature as an unfungible token surged 60% shortly after. In addition, both leading candidates issued campaign-related NFTs for electoral support.
Yoon pledged to “overhaul regulations that are far from reality and unreasonable” in South Korea’s crypto sector. One of the measures, originating in July, includes putting off 20% tax on income generated from cryptocurrency transactions exceeding 2.5 million won for two years.