Goyang Metropolis in South Korea Confiscates Over $228,000 in Cryptocurrency from Offending Visitors

The South Korean city of Goyang has confiscated cryptocurrency valued at over $228,000 from residents who failed to pay traffic fines.

According to Simin Ilbo, the municipality, a satellite of Seoul, reported that it had seized funds from the crypto wallets of 157 Goyang residents.

Goyang Confiscates Funds from 157 Residents

This city, located in the affluent Gyeonggi Province, is a short commute from central Seoul.

A lake in Goyang, Gyeonggi Province, South Korea. (Source: hyolee2 [CC BY-SA 3.0])

This action marks a shift for local governments and provincial tax offices in South Korea.

Recently, South Korean municipalities and provinces have utilized new authorities to compel domestic cryptocurrency firms to provide wallet information related to their residents.

However, these powers have primarily been employed to recover unpaid local taxes. In many cases, they have liquidated residents’ Bitcoin (BTC) and other cryptocurrencies.

In some instances, they have issued ultimatums to residents, warning: “Pay your fines or we will liquidate your crypto.”

Goyang’s action indicates that municipalities are now willing to extend their reach. They appear poised to utilize their powers to seize funds from residents who neglect to pay various council-imposed fines.

The city indicated that the 157 residents had not settled a range of “vehicle insurance and inspection delay fines.”

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— Bloomberg (@business) January 22, 2025

Crypto Exchanges Provided Information

Goyang stated it was reacting to a surge in activity within the domestic cryptocurrency market. It concluded that cryptocurrencies could be utilized as a means of hiding assets by individuals who default on vehicle fines.

Gyeonggi Province requested the nation’s four largest cryptocurrency exchanges (Bithumb, Upbit, Korbit, Coinone) to hand over customer information on individuals based in Goyang.

The province then cross-referenced this data with its own list of “chronic defaulters.” It focused on Goyang residents with outstanding vehicle fines amounting to “KRW 1 million [approximately $696] or more.”

Officials from Goyang expressed their expectation that this action would motivate other crypto-holding residents with unpaid traffic fines to settle their debts.

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The city asserted that its decision would assist taxpayers in “realizing that there is no way to evade unpaid fines” due to its authority to “trace and seize digital assets.”

“We will continue to monitor and collect taxes from repeat tax defaulters using our collection methods. We will strive to ensure a system of fair taxation. Honest taxpayers should not be treated unfairly.”

Goyang City spokesperson

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