Tax officials in Jeju City, the capital of Jeju Island, have begun freezing and seizing cryptocurrencies from individuals suspected of tax evasion, following legislation passed in 2021 that permits such actions to recover debts. The authorities identified 2,962 individuals in arrears accumulating 19.7 billion won ($14.2 million) and found that 49 alleged tax dodgers held cryptocurrency valued at 230 million won ($166,269). To facilitate debt recovery, Jeju's Tax Division has engaged with major exchanges like Bithumb and Upbit to secure these assets. Jeju's Tax Chief, Hwang Tae-hoon, emphasized the need to strengthen efforts against tax evasion by utilizing virtual assets for revenue collection and fostering a culture of compliance among taxpayers. Historically a tourist hub, Jeju has embraced crypto initiatives, leveraging AI for data analysis to uncover hidden tax sources. This initiative marks a continuation of South Korea's broader regulatory efforts against tax evasion within the cryptocurrency sector.

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