Goyang City in South Korea Confiscates Over $228,000 in Cryptocurrency from Traffic Violators

The city of Goyang in South Korea has confiscated crypto assets valued at over $228,000 from residents who did not pay their traffic fines. According to Simin Ilbo, the city, which is a suburb of Seoul, reported that it seized cryptocurrencies from the wallets of 157 residents.

Located in the prosperous Gyeonggi Province, Goyang is just a short distance from central Seoul. This action signifies a new approach for local governments and tax offices in South Korea. In the past few years, these entities have used their authority to compel domestic crypto companies to provide crypto wallet information related to their residents, primarily to recover unpaid local taxes. Often, they liquidated citizens’ Bitcoin and other cryptocurrencies or issued ultimatums to pay fines or face the sale of their crypto holdings.

Goyang’s recent actions suggest that cities are now prepared to extend their reach, using their power to take cryptocurrencies from citizens who fail to settle a variety of municipal fines. The city stated that the 157 individuals had not paid various vehicle insurance and inspection delay fines.

Goyang also indicated that its actions were in response to an increase in domestic crypto market activity, suggesting that cryptocurrencies could be used to hide assets by those defaulting on vehicle fines. Gyeonggi Province requested the four largest crypto exchanges—Bithumb, Upbit, Korbit, and Coinone—to provide customer data for individuals based in Goyang. The province then cross-referenced this data with a list of habitual defaulters, focusing on those with unpaid vehicle fines of KRW 1 million or more.

Officials in Goyang expect that this move will motivate other crypto-holding residents with outstanding traffic fines to pay what they owe. The city emphasized that its decision would help taxpayers understand that there is no escaping unpaid fines, thanks to its ability to track and seize virtual assets.

“We will continue to track and collect taxes from repeat tax defaulters with our collection techniques. We will do our best to ensure a system of fair taxation. Honest taxpayers should not be treated unfairly,” said a Goyang City spokesperson.

Twitter: South Korea’s Goyang City seizes over $228,000 in crypto from traffic violators who didn’t pay fines—a bold move to enforce compliance. #Crypto #SouthKorea