Paju City, South Korea, becomes the first local government in the country to sell cryptocurrency to collect overdue payments

The city of Paju in South Korea is set to become the first local government in the country to directly sell virtual currency to delinquent local tax payers to collect overdue amounts.
On the 13th, the city sent out a teaser notice for the transfer and sale of virtual currency to 17 people who had defaulted on local taxes of 124 million won (approximately 13.74 million yen).
If they do not pay their overdue amounts by the end of this month, the city will transfer about 50 million won (about 5.54 million yen) of virtual currency they hold to a city account and sell it to use the proceeds to pay the overdue amounts.
As virtual currencies have expanded rapidly in recent years, they have been misused by tax defaulters as a way to hide or move assets.
The government is exploring new ways to collect local taxes, and this measure is part of that effort. The promotion of direct sales of virtual currencies sends a message that tax defaulters cannot hide their assets,
The city plans to track down the assets of those in arrears and take action against them. Woo Sang-hwan, head of the city's collection division, emphasized the importance of collecting overdue amounts, saying, "Paju city is carrying out collection activities for various overdue amounts.
"We will roll out support programs to help with economic recovery, such as encouraging delinquent taxpayers who are struggling to make ends meet to make installment payments."