South Korea’s Tax Authority Targets Crypto Tax Evasion via Cold Wallet Seizures

South Korea’s National Tax Service (NTS) has escalated its crackdown on cryptocurrency tax evasion, warning holders that cold wallets will no longer serve as safe havens. The agency confirmed plans to conduct home searches and confiscate hardware wallets or storage devices containing unpaid taxable assets.

The move follows mounting challenges in tracing offshore exchange holdings and privately held digital assets. Domestic crypto ownership has surged nearly ninefold since 2020, with 10.77 million South Korean investors now holding VIRTUAL assets—a statistic that underscores the growing compliance challenge.

Local reports identify crypto as a preferred vehicle for tax avoidance due to perceived anonymity advantages over traditional securities. The NTS counters this through physical asset seizures, marking a new phase in enforcement rigor.