South Korean Tax Agency Warns Crypto Holders of Cold Wallet Seizures for Unpaid Taxes

South Korea's National Tax Service has escalated its crackdown on crypto tax evasion, announcing plans to confiscate cold wallets from delinquent taxpayers. Officers will conduct home visits to seize hardware storage devices if liabilities remain unpaid.

Authorities have already begun monitoring domestic exchange wallets, but now target offline holdings through blockchain forensics. "We track transaction histories with specialized software," an NTS spokesperson stated. "When we identify concealed offline assets, we execute search warrants for physical storage media."

The enforcement push extends beyond income taxes to municipal levies like water bills and traffic fines. However, jurisdictional limitations hamper efforts to track assets held on foreign exchanges, requiring international cooperation for recovery.