Cheongju’s Cryptocurrency Confiscation Initiative
Cheongju, the principal city of North Chungcheong Province in South Korea, has disclosed that it has confiscated cryptocurrency holdings from over 200 individuals since 2021 due to unpaid local taxes. According to a report by the South Korean news outlet Yonhap, the officials in Cheongju indicated that these actions are part of a broader initiative targeting tax delinquency within their jurisdiction.
Establishment of a Trading Account
In a significant development, the city has also established a trading account on an unnamed cryptocurrency exchange, positioning itself as one of the pioneering governmental entities to enter into the digital asset trading sphere. This move aligns with recent decisions by the Financial Services Commission (FSC), the country’s financial watchdog, which is permitting government agencies and charitable organizations to engage in buying and selling cryptocurrencies as a step towards embracing corporate investments in the sector.
Enhanced Measures Against Tax Offenders
Cheongju’s authorities are poised to tighten their grip on tax offenders by compelling cryptocurrency exchanges to share information regarding the digital wallets associated with these noncompliant residents. Local tax authorities already have the authority to freeze the crypto assets of individuals who evade tax payments. However, with the establishment of the new trading account, officials plan to enable direct transfers of seized cryptocurrencies into the city’s wallet, facilitating quicker liquidation processes.
