The post South Korea’s Jeju Seizes Crypto From Tax Evaders After Probing 3,000 Accounts appeared first on Coinpedia Fintech News
South Korea is tightening its grip on crypto, going after both tax evasion and digital asset crimes.
From seizing hidden wealth to expanding fraud investigations, the government is making it clear that crypto is not a place for rulebreakers.
Here’s the action taken.
Jeju City Moves to Seize Crypto
According to a report from Newsis, Jeju City is moving ahead with seizing cryptocurrency from around 40 people who have not paid their taxes. Officials announced that they have finished checking the digital asset holdings of these defaulters and will use seizures to recover unpaid amounts.
Notably, the city checked the crypto accounts of nearly 3,000 people who owe local taxes, adding up to 19.7 billion won. Through four major exchanges, Bithumb, Dunamu, Coinone, and Korbit, they found 49 people holding about 230 million won in crypto.
The city has now designated these exchanges as third-party debtors, giving it the authority to seize the assets and recover unpaid taxes.
AI to Catch Tax Evaders
Tax Division Chief Hwang Tae-hoon said the city will also use AI to go after major tax dodgers, recover tax revenue, and promote fair tax payment.
“We will do our best to track down and collect high-value tax delinquents through AI-based information analysis, striving to secure substantial tax revenue and foster a culture of honest tax payment,” he said.
Jeju, the island, is a popular tourist spot and has experimented with crypto before, with NFT tourist cards and even introduced a blockchain-powered COVID-19 tracing system.
Since 2021, South Korea has had laws allowing officials to seize crypto from unpaid taxpayers. What is changing now is the scale and speed of enforcement.
Other Cities Join the Push
Jeju is not the only city tightening tax enforcements on crypto.
- In Paju, near Seoul, officials revealed in November 2024 that they would seize and sell crypto from people who had not paid taxes.
- In 2021, Seoul city officials confiscated $22 million worth of crypto from individuals and company heads who were behind on their payments.
- Across the country in 2021 and 2022, authorities seized around $180 million worth of crypto from tax evaders.
- Earlier this year, Gwacheon in Gyeonggi Province introduced a new electronic system to track and seize digital assets from tax delinquents, with plans to expand it across the province soon.
South Korea’s Crypto Crackdown
South Korea is also increasing its efforts to tackle rising crypto-related crimes.
It has officially made its Joint Investigation Unit (JIU) for Virtual Asset Crimes a permanent division under the Seoul Southern District Prosecutors’ Office. It began in 2023 as a temporary task force but was upgraded in February 2025 after a rise in crypto fraud.
The JIU now includes prosecutors and regulators from the FSC and FSS, with expanded powers to fight crypto crimes and protect investors.
These moves show that South Korea is taking strong steps to clean up the crypto space, which will protect investors and ensure that digital assets are used responsibly.