March 27, 2024
South Korea's cryptocurrency holdings dominate foreign asset disclosures
Latest Cryptocurrency News

Over 70% of South Korea’s Reported Foreign Assets Are in Cryptocurrency

Cryptocurrencies, such as Bitcoin, constituted the largest portion of South Korea’s disclosed foreign assets in the most recent report from the country’s tax authority. On September 20, South Korea’s National Tax Service (NTS) issued an official announcement, revealing that this year, 1,432 individuals and companies disclosed having overseas accounts containing cryptocurrency.

The combined value of cryptocurrency holdings that were reported amounted to 130.8 trillion South Korean won, equivalent to $98 million, which represents over 70% of the total value of all disclosed foreign assets.

Official data indicates that a total of 5,419 entities disclosed their overseas financial accounts, encompassing various assets, including cryptocurrencies and stocks, along with deposits and savings, totaling 186.4 trillion won ($140 million).

While cryptocurrencies accounted for the largest reported overseas assets in terms of value, deposits and savings accounts took the lead in terms of the number of reports, with 2,952 individuals and companies declaring holdings worth 22.9 trillion won ($17 million). An additional 1,590 entities reported possessing stocks valued at 23.4 trillion won ($17.6 million).

The NTS emphasized its intention to closely examine those who neglect to disclose their overseas financial accounts. The authority has been compiling data from cross-border information exchanges, foreign exchange transactions, and notifications from related agencies. It also stated that it would impose fines on individuals who violate the regulations.

The NTS stated that in order to respond to the risk of potential tax base erosion through virtual assets, tax authorities around the world, including the National Tax Service, are preparing to exchange information in accordance with the Information Exchange Reporting Regulations.

South Korea, known for its crypto-friendly environment, has been particularly attentive to cryptocurrency tax regulations in recent years, seizing millions of dollars in cryptocurrency from tax evaders. In August 2023, the South Korean city of Cheongju reaffirmed its plans to confiscate cryptocurrency from local tax defaulters. Previously, the South Korean government had postponed the implementation of a 20% tax on crypto gains, initially slated for early 2023, but it has now been rescheduled for 2025.

Image by pixabay

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