With cryptocurrency regulations growing all across the globe, the same is the case with rules related to its tax implications. Governments are picking up on rules to make the crypto tax system more rigid than ever, and in case of evasions, it comes with solid consequences.
Adding to this news, the National Tax Service (NTS) of South Korea is stepping up its efforts to combat tax evasion and has warned that cryptocurrency holdings kept in cold wallets might be seized.
Details on the regulations
People still have the concept that crypto profits and transactions go unnoticed by the government. Due to this, escaping tax becomes easy compared to traditional assets.
An NTS official stated that the agency is ready to inspect homes and seize hard drives and cold wallet devices if it believes that tax evaders are concealing their cryptocurrency holdings offline, according to an article from local news source Hankook Ilbo.
“We analyse tax delinquents’ coin transaction history through crypto-tracking programs, and if there is suspicion of offline concealment, we will conduct home searches and seizures,” the NTS spokesperson reportedly said.
Also Read: South Korea’s Jeju City Cracks Down on 2,962 Individuals in Tax Arrears Using Crypto Seizures
The National Tax Collection Act of the nation gives the NTS the authority to ask local exchanges for account information, freeze the accounts of tax evaders, and sell their assets at market value to pay off their outstanding taxes.
NTS seized over $100 million in crypto in four years
According to Hankook Ilbo, there were about 11 million cryptocurrency investors in the nation as of June, an increase of nearly 800% from the 1.2 million in 2020.
According to the site, within the same time period, the nation’s trading volumes increased from 1 trillion won ($730 million) to $4.7 billion.
Tax evasion charges using cryptocurrency have increased as a result of the boom in use. In 2021, the government started focusing on the cryptocurrency holdings of tax evaders, seizing around $50 million from 5,700 individuals.
Crypto tax evasion cases in other countries
South Korea is not the only country that is facing major tax evasion cases in the world. During its enforcement activities, the Income Tax Department in India discovered Rs 630 crore, or around $71 million, in undeclared VDA profits.
Surveys were carried out nationwide by officers. These operations targeted people and organisations whose cryptocurrency activities indicated more revenue than reported.
Also, Roger Ver, the founder of Bitcoin.com, pleaded with US judges a few months ago to reject his tax evasion prosecution, claiming that it “violates the Constitution. According to recent reports, he is looking to settle by paying $48 million.
What does this mean?
The tax evasion cases have been growing wildly, along with cases of crypto hacks and scams. The NTS’s investigation of cold wallets coincides with a spike in questionable cryptocurrency transactions in 2025.
As of August 2025, VASPs in the nation submitted about 37,000 suspicious transaction reports (STRs), according to statistics released on September 22 by the Financial Intelligence Unit (FIU).
Also Read: Nigerian Court Adjourns Binance Tax Evasion Case As FIRS Seeks $2B In Taxes & $79.5B In Damages