In South Korea, a recent report from the country’s tax organization, the National Tax Service (NTS), highlights the dominance of cryptocurrencies like Bitcoin (BTC) among reported overseas assets.
The NTS issued an official announcement on September 20, revealing that 1,432 individuals and corporations reported overseas accounts involving cryptocurrency this year. The total reported amount in crypto reached 130.8 trillion Korean won (KRW), equivalent to around $98 million, making up over 70% of the total reported overseas assets.
Official data from the NTS shows that a total of 5,419 entities reported their overseas financial accounts, holding a combined total of 186.4 trillion KRW ($140 million) in assets, including cryptocurrencies, stocks, deposits, and savings.
While cryptocurrencies led in terms of reported assets, deposits, and savings accounts were more prevalent in terms of the number of reports. A total of 2,952 individuals and companies reported holding 22.9 trillion KRW ($17 million) in these accounts, while 1,590 entities reported holding stocks worth 23.4 trillion KRW ($17.6 million).
Cryptocurrency Accounts for Over 70% of Reported Overseas Assets in South Korea
The NTS has indicated its intention to scrutinize those who fail to report overseas financial accounts rigorously. It will use cross-border information exchange data, foreign exchange data, and related agency notification data to enforce fines for those who do not comply with reporting rules.
South Korea has become known for its efforts to regulate cryptocurrencies and enforce tax rules in recent years, including the confiscation of millions of dollars in cryptocurrency from tax evaders. In August 2023, the city of Cheongju in South Korea reaffirmed its plans to confiscate cryptocurrency from local tax delinquents.
Additionally, the South Korean government postponed the implementation of a 20% tax on cryptocurrency gains in July 2023. This tax was initially scheduled to take effect in early 2023 but has now been delayed until 2025 as part of the ongoing regulatory developments in the country.