💰 The tax authorities of Jeju City have launched a large-scale operation to seize and confiscate cryptocurrencies from citizens with outstanding tax debts.

Freeze requests were sent to four major South Korean exchanges: Bithumb, Upbit, Coinone, and Korbit.

Authorities identified 49 tax debtors holding cryptocurrencies. The total value of blocked assets reached 230 million won (~$165,953 at the time of publication).

The audit covered 2,962 citizens with debts exceeding 1 million won ($721). The total amount of obligations reached 19.7 billion won ($14.2 million).

Jeju Tax Office Chief Hwang Tae-hoon stated that the initiative aims to uncover “hidden tax sources” and increase market transparency. Using cryptocurrency data will allow authorities to effectively track debtors and prevent hidden financial fraud.

Use of Artificial Intelligence
In the future, authorities plan to apply AI data analysis to automate the detection of major debtors and monitor transactions. This system will enable timely freezing of suspicious accounts, predict potential risks, and minimize budget losses.

Context and Regulatory Environment
In March 2025, South Korea’s Financial Intelligence Unit blocked 17 foreign crypto exchanges in Google Play, strengthening crypto oversight and restricting access to potentially unreliable platforms.

Experts note that such measures reflect increasing regulatory strictness toward cryptocurrencies. This enhances market transparency and encourages crypto holders to fulfill their tax obligations.

Impact on the Market and Investors

• Exchanges: Increased transaction oversight may reduce user anonymity.
• Investors: Crypto holders should consider the risk of account freezes if they have tax debts.
• Regulators: South Korea sets an example of using technology for debt collection and crypto market control.

It is important to understand that Jeju’s tax actions are not a one-time experiment but part of an established practice based on a solid legal foundation:

• 2021 Law: The South Korean government officially allowed regulators to confiscate cryptocurrency to cover tax debts.
• Large-scale practice: In 2021–2022, crypto assets worth approximately $180 million were confiscated from tax evaders.
• Capital experience: In 2021, the Seoul administration seized $22 million in cryptocurrency from individuals and companies with tax debts.

South Korea demonstrates both a high level of cryptocurrency adoption and effective fiscal control, serving as an example for other countries.

📢 Conclusion: The seizure of crypto assets in Jeju sends a clear signal to the crypto market: regulators are taking active measures, using modern technologies, including AI, to enforce tax discipline.