Jeju City, the capital of South Korea’s famous island province, has launched an aggressive crackdown on tax evaders by targeting their cryptocurrency holdings. Local tax officials have begun freezing and seizing the digital assets of residents accused of dodging payments, marking another step in the country’s tightening grip on crypto-related tax enforcement.

According to local reports, authorities investigated nearly 2,962 individuals who collectively owed 19.7 billion won ($14.2 million). By analyzing data from major South Korean exchanges—Bithumb, Upbit, Coinone, and Korbit—officials discovered that 49 tax delinquents held over $166,000 in crypto assets. The exchanges have since been designated as third-party debtors, enabling the government to seize the funds to offset unpaid taxes.

Jeju City’s Tax Division employed artificial intelligence tools to track crypto transaction records, a method officials say will be expanded in the future. Tax Division Chief Hwang Tae-hoon emphasized the city’s commitment to uncovering hidden assets, stating that the team will continue using AI-powered analysis to identify high-value tax delinquents and strengthen overall compliance.

This latest operation adds to South Korea’s broader history of targeting cryptocurrencies to recover unpaid taxes. In recent years, regulators have enacted laws allowing the confiscation of Bitcoin and other digital assets from tax offenders. Between 2021 and 2022, the government seized around $180 million worth of crypto tied to tax evasion. Cities like Seoul and Paju have also confiscated millions in digital assets from individuals and business owners with outstanding debts.

With over 16 million South Koreans—nearly one-third of the population—engaged in crypto trading, the government views the sector as both a financial opportunity and a tool to ensure tax accountability. Jeju’s crackdown signals that digital assets are no longer safe havens for those attempting to evade the taxman.