Gwacheon City in South Korea Introduces System to Seize Crypto From Tax Dodgers

Gwacheon officials say their new electronic seizure system is crucial for closing tax loopholes and ensuring fairness. “This measure is a decision to establish tax justice so that citizens who faithfully pay their taxes are not disadvantaged,” Gwacheon City Tax Division Chief Kang Min-ah told the local media outlet.

Gwacheon will reportedly issue advance warnings to encourage voluntary payment and avoid unnecessary disputes, before seizing any assets. If residents fail to settle their dues within the deadline, authorities will proceed with crypto seizures and collection. The city has already seized $206,000 (300 million won) worth of crypto from tax evaders over the past five years, recovering $75,500 (110 million won) in unpaid taxes in 2024 alone. Officials expect the new system to significantly improve enforcement.

“This is a strong response to tax delinquents,” Kang noted, adding how authorities will “actively block tax evasion through the seizure of virtual assets. While South Korea tightens its grip on tax evasion, India is taking an even tougher stance on crypto taxation. The 2025 Union Budget proposed new amendments allowing tax authorities to audit undisclosed crypto gains from the past 48 months, with offenders facing a 70% penalty on unpaid taxes.The 30% tax on crypto earnings and the 1% TDS on transactions remain unchanged, offering no relief to traders.