The authorities in the South Korean city Cheongju have asked seven crypto exchanges, including Upbit and Bithumb, for information on around 8,520 customers suspected of tax evasion.
As reported by local publications, the crypto assets stored in the accounts of these users will be confiscated by the state.
The South Korean government launched in July a unit to combat cryptocurrency-related crimes, including tax evasion, unauthorized transfers and money laundering.
South Korea's Financial Services Commission (FSC) will require companies to disclose data on the presence of digital assets on their balance sheet from January 2024.
This is not the first time such an event has occurred in the South Korean city. Last year, Cheongju authorities requested a report on the crypto holdings of 16,000 people before proceeding to confiscate 68 million won.