Catenaa, Friday, September 26, 2025-Cheongju, the capital of South Korea’s North Chungcheong Province, has seized cryptocurrency from more than 200 residents who failed to pay local taxes, marking one of the country’s largest municipal crypto enforcement actions.
Authorities said 203 residents have had digital assets confiscated since 2021.
The city has also opened a trading account on a domestic crypto exchange, allowing officials to directly convert seized crypto into fiat for its treasury.
Cheongju officials emphasized that residents failing to settle outstanding tax bills will face compulsory liquidation of their digital holdings.
The move follows guidance from the Financial Services Commission, which is gradually permitting government bodies and charities to buy and sell cryptocurrency.
Cheongju previously relied on transaction suspension orders to freeze tokens, but limited methods made cash conversion difficult. The new system enables tax officials to forcibly transfer coins from resident wallets to the city’s account for direct sale.
Local authorities reported that 161 residents recently owed roughly 1.5 billion won ($1.1 million), prompting immediate seizure.
Officials stressed the crackdown ensures that crypto can no longer serve as a tax haven. Last month, Seoul’s Gangnam district reported its own crypto confiscation program, collecting 340 million won ($244,480) from tax-delinquent individuals.
Cheongju’s initiative reflects South Korea’s broader efforts to strengthen tax compliance in the growing digital asset sector, combining regulatory oversight with practical enforcement mechanisms to secure municipal revenue.
