In an unconventional move to enforce tax compliance, Jeju City is leveraging blockchain data to freeze and seize crypto assets from residents suspected of evading local taxes.
Authorities conducted investigations into nearly 3,000 individuals who owe approximately 19.7 billion won (about $14.2 million). Among them, 49 individuals were found holding over $165,000 in cryptocurrencies.
Data from major exchanges including Bithumb, Upbit, Coinone, and Korbit helped identify these crypto holders. The city designated these platforms as third party debtors, enabling seizure of assets through regulatory channels.
Jeju’s Tax Division has harnessed AI tools to trace crypto holdings and recover funds with any surplus proceeds to be returned to the taxpayers after debts are settled.
This marks a broader regulatory trend across South Korea, reinforcing that digital assets are fully subject to public finance enforcement mechanisms.
By integrating tech driven tracking with legal enforcement, Jeju City offers a model for how jurisdictions can enforce tax obligations in the age of cryptocurrencies.
