Cheongju’s Landmark Crypto Seizure: South Korean City Successfully Sells Digital Assets from Tax Delinquents

Cheongju’s Landmark Crypto Seizure: The South Korean city of Cheongju has successfully converted seized cryptocurrency into public funds, setting a powerful precedent for local tax enforcement nationwide. Finalized in late 2024, this represents the first completed sale since the city initiated its seizure program in 2021.

Seizure and Sale Mechanism

Recovery: Collected approximately 21 million won (~$15,200) by liquidating digital assets from 12 high-value and habitual tax delinquents.
Platforms: Executed sales through Upbit (completed) and is currently processing additional sales on Bithumb.
Legal Basis: Actions are supported by the Local Tax Collection Act and the national real-name bank account verification framework.

South Korean Crypto Tax Milestones

Year	Milestone
2017	Real-name banking rule for exchanges enabled user identification.
2022	National crypto tax law passed, creating a uniform legal basis.
2024	First completed city-level sale (Cheongju) proving the enforcement model works.

FAQ

Q: Why target cryptocurrency specifically?

A: It allows authorities to reach high-value delinquents who may lack traditional seizable property but hold significant crypto wealth.