This new system will be an important tool to detect and seize the crypto wallets of tax -evacuated citizens using the digital infrastructure of the city and the Gyeonggi Province in a broad sense.

According to Energy Kyungjae, a South Korean media organization, Gwacheon officials announced that they will implement “their own electronic virtual asset seizure systems”. The main purpose of this system is to reveal the secret assets of citizens who do not make tax declarations and do not pay sufficient taxes and to collect the receivables of the state.

In particular, 361 high -income citizens at the focus of the system, did not pay more than 3 million WON tax. The total tax debt of these citizens is an average of 18.8 billion Won. Allegedly, these people are trying to avoid a higher tax burden by hiding some of their reserves through crypto beings.

Although there is not yet a definite application of taxes on crypto assets in South Korea, regulators postponed the 20 %crypto tax rate, which is the subject of rumors until 2027.

However, despite the postponement of the government, the fact that the citizens of local tax institutions in some regions granted the authority to seize the crypto assets of the citizens of the new system increases the importance of the new system.

Gwacheon city officials, before performing any seizure process, warning to the relevant citizens will encourage the additional tax to pay. If no additional tax is paid within the specified period, the authorities will initiate the seizure of crypto assets.

The new CT -based seizure system is planned to be activated in the first half of 2025. In this process, how the additional tax collection will be realized and in what ways to identify the crypto wallets of citizens will be detailed.

Kang Min-Ah, Director of the Tax Office of Gwacheon City, emphasized that the commissioning of the system is vital for the tax system to operate in a fair and transparent way.

Kang, “Tax smugglers by taking strong measures and virtual assets by actively preventing tax smuggling through the seizure, we will provide a fair taxation system for all citizens,” he said.

Over the past five years, Gwacheon officials reportedly confiscated virtual assets in the hands of high -income tax smugglers in a total of approximately 300 million Won.

Only 2024, the authorities said they carried out a digital asset seizure of 110 million WON. These data are considered as an indication of how determined and effective policy of the city in tax collection.

The implementation of the new electronic seizure system is of great importance not only to increase tax revenues, but also to prevent tax trafficking on digital assets.

This move of the City of Gwacheon can also set an example for other local governments and pave the way for new practices on tax justice throughout South Korea. Thus, it will be possible to take more effective measures against the new tax smuggling methods brought by the digital age.