<p>South Korea’s Cheongju City, located 112km south of Seoul, <a href="https://newsis.com/view/?id&#61;NISX20230822_0002421387&amp;cID&#61;10806&amp;pID&#61;10800" rel="noopener noreferrer nofollow">has announced</a> today that it will tackle local tax delinquents, focusing on the confiscation of their virtual assets.</p><h2 id="header-0">Tax debtors owing over KRW 1 million</h2><p>To address this challenge, Cheongju City has requested records of cryptocurrency holdings for 8,520 individuals, each owing over KRW 1 million ($747) in local taxes, from seven cryptocurrency exchanges, including Upbit and Bithumb. The city’s plan is to seize and then liquidate these cryptocurrencies to recover the pending tax amounts.</p><p>This move is facilitated by the amended Act on Reporting and Use of Specified Financial Transaction Information. Under this act, virtual asset service providers (VASPs) must uphold obligations such as confirming the identity of their customers and notifying authorities of dubious transactions. Moreover, the city is keenly monitoring the transfer of virtual assets, focusing particularly on those owned by individuals with unresolved tax dues.</p><h2 id="header-1">Legal grounds</h2><p>In 2018, the South Korean Supreme Court ruled that virtual assets are recognized as intangible yet legitimate assets, which can be subject to confiscation. It is this ruling that empowers Cheongju City to act against tax arrears by seizing cryptocurrencies.</p><p>Last year, Cheongju City scrutinized the crypto records of 16,000 individuals and successfully recouped KRW 68 million in taxes from 17 defaulting taxpayers. Cryptocurrencies of those still evading their tax responsibilities remain under confiscation.</p><p>A city official said that Cheongju will take firm and swift action to collect delinquent payments from those who conceal assets or are repeat offenders.</p>

Cheongju City Targets Cryptocurrency to Recoup Unpaid Taxes

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