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South Korean town near Seoul has effectively piloted a program that allows police to seize cryptocurrency from the exchange accounts of people who owe Traffic Fines.

The national government chose Gunpo, a city of about 275,000 people in northwestern Gyeonggi province, to carry out the pilot program in 2022, which according to an Aug. 16 report from the JoongBoo Ilbo news outlet, was a way to collect delinquent funds in an "untact," or contactless fashion.

The program would seem to have been likely to succeed, at least in the first half of 2022, with Gunpo police achieving an 88% collection rate on traffic fines totaling $668,000, putting the city on track to exceed its goal of pursuing $759,000 in traffic fines by the end of the year.

However, the trial only saw an individual subject to crypto seizures by the police receive delinquent fines totaling an excess of about $759. In contrast, crypto seizures were only used if the funds in the individual's bank accounts had already been drained.

According to Jungo Ilbo, fines accumulated in the year's first half have already exceeded total yearly collections in each of the previous three years.

Although the report did not specify which crypto would be apprehended and sold to pay fines, the Korean crypto market is lucrative for law enforcement to extract penalties from, having grown to $45.9 billion in 2021.

Posted 
Aug 18, 2022
 in 
Crypto News
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