South Korea Intensifies Crypto Crackdown, Expands Seizures to Cold Wallets

South Korea's cryptocurrency crackdown intensifies as the National Tax Service (NTS) expands enforcement powers to target cold wallet storage, marking a significant shift in crypto regulation. Tax authorities announced they will conduct home searches and seize devices when suspecting tax evaders are hiding Bitcoin, Ethereum, and other digital assets in offline cold storage wallets.

This aggressive enforcement action eliminates the previous safe haven that cold wallets provided for cryptocurrency holders attempting to avoid tax obligations. The policy change signals South Korea's determination to combat crypto tax evasion through comprehensive blockchain asset tracking and seizure capabilities.

The expanded powers allow authorities to physically search properties and confiscate hardware wallets, USB devices, and other cold storage solutions where cryptocurrencies may be stored offline. This development could significantly impact the Korean cryptocurrency market, potentially driving increased compliance among Bitcoin traders and DeFi investors.

Market implications suggest this crackdown may influence cryptocurrency prices and trading volumes in one of Asia's largest crypto markets. The enforcement expansion demonstrates global regulatory trends toward stricter cryptocurrency oversight, affecting blockchain adoption and digital asset investment strategies across the region.