Authorities in Paju, South Korea, are ramping up efforts to collect unpaid taxes by seizing the cryptocurrency holdings of residents with outstanding debts. On Nov. 18, local news outlet Yonhap reported that the Paju city administration issued notices to 17 residents with a combined tax debt of 124 million Korean won, approximately $88,600.
Officials have warned the taxpayers that if they do not settle their debts by the end of November, their crypto assets held on exchanges will be confiscated and liquidated. This action highlights a broader effort by Paju officials to crack down on tax evasion through digital assets, following an earlier seizure of 100 million won (about $72,000) in cryptocurrencies from delinquent taxpayers in July.
Paju authorities stressed that they are committed to identifying and penalizing those attempting to use cryptocurrencies to evade tax responsibilities. The move aims to reinforce that converting funds into digital assets will not shield individuals from paying their dues. According to Yonhap, cryptocurrencies have increasingly been used as a tool for tax evasion in South Korea.
In related news, NongHyup Bank is planning to introduce tokenized value-added tax (VAT) refunds, partnering with digital asset platform Fireblocks to develop a prototype system. The bank’s pilot project, announced on Nov. 13, will leverage Fireblocks’ tokenization technology to streamline the VAT refund process, allowing real-time tracking and reducing operational errors and fraud risks.