In a significant escalation of enforcement measures, South Korea’s National Tax Service (NTS) has announced expanded capabilities for seizing digital assets, explicitly including cryptocurrency held in cold storage wallets. The tax authority clarified that these offline storage devices, previously considered beyond regulatory reach, now fall squarely within their jurisdiction as part of comprehensive efforts to address tax evasion through digital means.
The NTS revealed it will employ search and seizure operations, including residential visits, to access and secure cryptocurrency assets stored in cold wallets when investigating suspected tax evasion cases. This development marks a pivotal moment in regulatory enforcement, demonstrating authorities’ growing technical sophistication in tracking and recovering digital assets across all storage formats.
This policy enhancement reflects South Korea’s increasingly stringent approach to cryptocurrency regulation and tax compliance. Financial experts note this represents one of the most direct assertions of jurisdictional authority over cold storage devices by any national tax agency globally. The measures underscore the government’s determination to ensure all cryptocurrency transactions and holdings comply with existing tax legislation, closing what some had perceived as a regulatory gap in digital asset enforcement.
The intensified seizure capabilities come amid broader global efforts to regulate cryptocurrency markets and prevent tax avoidance through digital assets. South Korea’s proactive stance signals a maturing regulatory environment where technological barriers no longer provide insulation from financial oversight and compliance requirements.
