Cryptocurrencies, primarily Bitcoin, have emerged as a dominant component of South Korea’s overseas assets, according to the latest report released by the country’s National Tax Service (NTS).
In an official announcement made on September 20, the NTS disclosed that a total of 1,432 individuals and corporations had reported overseas accounts denominated in cryptocurrencies during the current year.
The cumulative value of these reported cryptocurrency holdings amounted to a staggering 130.8 trillion South Korean won, which equates to approximately $98 million.
This remarkable figure represents more than 70% of the overall reported value of all overseas assets.
The official data revealed that a total of 5,419 entities had filed reports regarding their offshore financial accounts, encompassing a diverse range of assets, such as cryptocurrencies, stocks, deposits, and savings.
The aggregate worth of these assets was measured at 186.4 trillion won, or around $140 million.
Although cryptocurrencies were the single largest category in terms of the value of assets reported, deposits and savings accounts were predominant in terms of the number of reports filed.
A total of 2,952 individuals and companies reported holdings worth 22.9 trillion won, equivalent to $17 million.
Additionally, another 1,590 entities disclosed the possession of stocks valued at 23.4 trillion won, or approximately $17.6 million.
READ MORE: Dubai-Based Cryptocurrency Exchange Faces Liquidity Crisis Amid Regulatory Scrutiny
To ensure compliance with tax regulations, the NTS has outlined its intention to intensively scrutinize individuals and entities that fail to report their overseas financial accounts.
The agency has been collecting comprehensive cross-border information exchange data, foreign exchange data, and notifications from relevant agencies, and it is prepared to levy fines on those who breach the reporting rules.
The NTS emphasized the global trend of tax authorities collaborating to exchange information, as part of efforts to counter potential tax base erosion resulting from virtual assets.
South Korea, known for its crypto-friendly environment, has become increasingly vigilant regarding cryptocurrency tax regulations, even confiscating significant amounts of cryptocurrency from tax evaders.
In August 2023, the city of Cheongju in South Korea reiterated its commitment to seizing cryptocurrency from local tax delinquents.
Previously, the South Korean government had postponed the implementation of a 20% tax on crypto gains, originally scheduled for early 2023, now rescheduled for 2025.
These actions underscore the evolving landscape of cryptocurrency taxation in South Korea.
Other Stories:
Blockchain Betting: The New Way to Invest in Digital Assets
DeFi Ecosystem Faces Challenges as On-Chain Activity Declines and Stablecoins Feel the Pressure
Cryptocurrency Market Sees Bullish Momentum Amidst Bitcoin’s Recovery
