Gangnam District Crypto Confiscation Targets Tax Evaders
Gangnam District, an affluent area of Seoul, has intensified its crypto confiscation drive to recoup unpaid local taxes from residents, seizing 340 million won ($244,796) in digital assets since late 2024. In the first half of 2025 alone, 200 million won ($144,057) was recovered through freezing wallets identified via data-sharing with the nation’s five main fiat-trading crypto exchanges. Tax evaders face an ultimatum to settle overdue levies or risk liquidation of their coins. Officials report a surge in voluntary payments following the crypto confiscation enforcement. Under new corporate rules, the district can now open crypto wallets directly, streamlining asset liquidation. Seoul’s city government plans to extend this cooperative system across all districts. Meanwhile, Korbit exchange has partnered with Busan Customs Office to aid in tracking and seizing assets from long-term evaders, reflecting growing institutional collaboration aimed at enhancing tax compliance in South Korea’s booming virtual asset market.
Bearish
The intensified crypto confiscation drive in Gangnam District signals South Korean authorities’ growing resolve to clamp down on tax evasion within the digital assets sector. In the short term, this enforcement may trigger sell-offs as holders preemptively liquidate positions to avoid potential freezes, exerting bearish pressure on local crypto markets. Historical precedents, such as China’s 2017 exchange closures and wallet monitoring, resulted in temporary price dips and heightened volatility. However, by promoting regulatory transparency and compliance, these measures could bolster long-term market stability and institutional confidence. Traders should monitor enforcement developments and exchange cooperation agreements closely, as further data-sharing partnerships may influence liquidity and risk assessments in South Korea’s crypto ecosystem.