Cryptocurrencies of hundreds of labeled tax delinquents who hid their assets in digital form were seized by the Seoul Metropolitan Government.
The action made the local government the first in South Korea to impose such action in an attempt to go after tax evaders. The city government said that their Tax Collection Department was able to track down the digital currencies of more than 1,500 individuals and heads of companies in three cryptocurrency exchanges.
They were able to seize more than 25 billion Won ($22 million) in virtual assets from 676 individuals. They owed their government 28.4 billion Won in overdue taxes.
Since the seizure, 118 of these individuals have already paid 1.26 billion Won.
Delinquents make their plea
In a press release cited by Yonhap News Agency, the city government revealed that they are “continually being asked by delinquent taxpayers to refrain from selling their cryptocurrencies as they will pay their taxes.”
The SMG also said they “believe the taxpayers expect the value of their cryptocurrencies to increase further due to the recent spike in the price of cryptocurrencies and have determined they will gain more from paying their delinquent taxes and having the seizure released.”
To that end, some guilty parties have already started to make amends.
A hospital director who reportedly owned 12.5 billion won worth of digital currencies instantly paid 580 million won out of the 1 billion won he owed in unpaid taxes. He even provided security for the rest just so he could keep his currencies.
Another one, who owes 20 million won, has also asked the city government that his seized virtual assets worth more than 3 million won be not sold until two years after, expecting that the sum will grow to a size big enough to cover his delinquent taxes.
One of the most popular forms of cryptocurrencies from among the delinquents were Bitcoin (BTC) (at 19%), DragonVein and Ripple (at 16% each), Ethereum (ETH) at (10%), and Stellar (at 9%).
Image courtesy of Cointelegraph News/YouTube