Cheongju, South Korea opens virtual asset accounts to sell cryptocurrencies seized from tax delinquents

ChainCatcher news, according to Yonhap News Agency, the city of Cheongju in South Korea has opened virtual asset trading accounts in the name of the local government, allowing taxpayers who owe local taxes to directly sell virtual assets.

Since 2021, the city has seized the virtual assets of 203 taxpayers who owe local taxes through measures such as suspending transactions, but tax revenue has been limited due to a lack of monetization methods. To address this, the city has opened virtual asset trading accounts in the name of the local government. If taxpayers who owe taxes fail to pay, the seized virtual assets will be transferred to the city government’s account and sold directly. However, due to the high volatility of virtual asset prices, the city government will recommend that taxpayers who owe taxes sell their virtual assets to pay their dues and will initiate compulsory sale procedures if necessary. The seized virtual currency involves 161 individuals, who owe approximately 1.5 billion won in local taxes. A city government official stated, "We will do our utmost to recover these assets and ensure that virtual assets are no longer used as a means of tax evasion."