Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The South Korean city of Ansan has announced that it will confiscate cryptocurrency from residents who fail to pay local taxes.
According to Newsis, government officials in Ansan, located in Gyeonggi Province, stated on August 2 that they would begin utilizing a “virtual asset platform seizure system” to “recover unpaid local taxes.”
Officials confirmed that the city will roll out the platform “starting this month.”
Ansan Plans to Confiscate Crypto from Residents Who Don’t Pay Bills
The city noted that the domestic cryptocurrency market capitalization reached the $31.7 billion mark last year.
Cryptocurrency ownership rates are high in Gyeonggi Province, which is one of the most affluent regions in the country.
Ansan, Gyeonggi Province. (Source: Dmthoth [CC BY-SA 3.0])
Ansan is responding to similar initiatives launched in other parts of the country. By leveraging data from major South Korean cryptocurrency exchanges, cities can monitor their residents’ cryptocurrency-linked bank accounts and wallets.
If any of these accounts match the details of unpaid local tax bills, cities have been granted the power to freeze wallets and demand payment.
Related Posts
If citizens fail to settle their tax debts, the city can forcibly liquidate the cryptocurrency on the exchange and transfer the fiat currency to its own accounts.
Ansan stated that it was “urgent to come up with countermeasures,” noting that local tax “delinquents” have been “abusing virtual assets as a means of hiding” their wealth.
The media outlet explained that previous efforts to seize and freeze cryptocurrency from tax evaders were conducted only as part of a “pilot program.”
South Koreans crashed an auction site bidding for discounted luxury apartment units https://t.co/Nly0mw7etJ
— Bloomberg (@business) July 30, 2024
‘We Will Increase Tax Revenues by Hunting Crypto Offenders’ – Ansan
However, the city stated that “starting this month,” Ansan would use the platform “across all” of its “local tax revenue sectors.”
The city expects to “find hidden tax arrears” and stated it would “increase tax revenue” as it begins monitoring cryptocurrency wallets. Ansan’s Mayor Lee Min-geun said:
“We will use the platform to find people who commit illegal acts such as tax evasion. We will do our utmost to ensure the operation of a fair and reasonable tax system.”
Last month, Ansan police arrested several individuals in the city as part of a nationwide crackdown on a suspected $4.3 million cryptocurrency-powered drug trafficking ring.
The post South Korea’s Ansan Says It Will Confiscate Crypto from Tax Dodgers appeared first on Cryptonews.
