Goyang City Opens Corporate Accounts at Four Major Exchanges... Paves Way for Direct Liquidation of Delinquents' Virtual Assets

Goyang City Opens Corporate Accounts at Four Major Exchanges
Direct Sale of Delinquents' Virtual Assets Begins in December
Establishment of a "One-Stop Delinquent Tax Collection System" for Seizure, Transfer, and Liquidation

Goyang Special City in Gyeonggi Province (Mayor Lee Donghwan) announced on November 26 that it has established a "one-stop delinquent tax collection system" by opening non-profit corporate accounts at the four major domestic virtual asset exchanges and directly liquidating the virtual assets of tax delinquents. This initiative aims to prevent tax delinquents from hiding their virtual assets and to enhance the effectiveness of tax collection administration.

A view of Goyang Special City Hall. Provided by Goyang Special City.

With this measure, the institutional limitations that previously hindered local governments from collecting virtual assets have been resolved, and full-scale compulsory collection procedures will begin in December.

Goyang City successfully opened corporate accounts at all major domestic virtual asset exchanges, including Upbit, Bithumb, Korbit, and Coinone, through cooperation with these platforms.

This fundamentally addresses the previous challenges faced by local governments, where even if virtual assets were seized, difficulties in opening exchange accounts and the complexity of the liquidation process made it hard to actually collect delinquent taxes.

The newly established "one-stop virtual asset collection system" operates by safely transferring seized virtual assets to the city's corporate accounts, after which the city directly sells the assets and uses the proceeds to offset local taxes.

Prior to this measure, the city had already sent voluntary liquidation notices to local tax delinquents who possess seized virtual assets.

Delinquents have been given until November 30 to voluntarily sell their virtual assets and pay their taxes. However, if they fail to settle their delinquent taxes within the deadline, the city will proceed with the compulsory liquidation process by transferring the seized virtual assets to the corporate accounts and selling them directly, without any grace period.

A city official stated, "This measure will set a clear precedent that virtual assets cannot be used as a means to evade or conceal taxes," and added, "We will continue to proactively respond to the evolving financial environment, protect diligent taxpayers, and develop new collection strategies to establish a fair local tax payment culture."

This proactive measure by Goyang City is being recognized for maximizing the effectiveness of tax collection administration by setting a precedent of directly liquidating virtual assets, amid a nationwide trend of local governments seizing virtual assets to collect delinquent taxes.

This content was produced with the assistance of AI translation services.