The South Korean National Tax Service has announced that taxpayers in the country have collectively reported overseas cryptocurrency assets with a total value of 130.8 trillion won, equivalent to approximately $98.5 billion. This disclosure comes as a result of South Korea’s newly implemented requirement for the reporting of overseas cryptocurrency assets.
According to the National Tax Service’s statement, a total of 1,432 individuals and companies have complied with the reporting obligation for their overseas cryptocurrency holdings. South Korea now mandates that its citizens who possess assets exceeding 500 million won, including cryptocurrency, in foreign accounts must declare the details of their holdings. This initiative is in line with local regulations and policies reported by the news agency Yonhap.
Remarkably, the cryptocurrency assets declared by South Korean taxpayers abroad constitute a significant portion, accounting for 70.2% of the total value of reported foreign assets, as noted by the tax authority.
South Korea has been actively strengthening its regulatory framework for the cryptocurrency industry. In June, the country’s lawmakers passed a comprehensive set of legislation aimed at enhancing investor protection. This package of 19 crypto-related bills grants regulatory authority to institutions like the Financial Services Commission and the Bank of Korea to oversee cryptocurrency operators and asset custodians. Additionally, the legislation empowers authorities to impose penalties in cases of unfair trading involving virtual assets.
Furthermore, in July, the Financial Services Commission revealed plans to introduce new accounting rules, requiring domestic companies to disclose their cryptocurrency holdings starting from the following year. These regulations will also mandate cryptocurrency issuers to provide detailed information, including token specifications, business models, and internal accounting policies, enhancing transparency within the crypto sector.