South Korea Expands Crypto Tax Crackdown to Include Cold Wallet Seizures

South Korea's National Tax Service is escalating its campaign against crypto tax evasion with unprecedented measures. Authorities will now confiscate digital assets stored in cold wallets, marking a significant policy shift in enforcement tactics.

The agency has conducted over 14,000 crypto seizures since 2020 and anticipates nearly 11 million domestic crypto investors by 2025. Tax officials confirm they'll execute physical searches of residences when offline asset storage is suspected, using specialized tracking software to identify concealed holdings.

This crackdown specifically targets hardware wallets, which delinquents increasingly use to avoid detection. The NTS's new approach reflects growing institutional sophistication in monitoring blockchain transactions, closing what was once considered a regulatory blind spot.