Latest Cryptocurrency News: Cryptocurrency Dominates South Korea’s Overseas Assets Reporting

David - Cryptocurrency Specialist

In a revealing update from South Korea, cryptocurrencies, especially trusted Bitcoin and others, have emerged as the predominant component of overseas assets reported by South Korean entities.

The latest cryptocurrency news from South Korea’s National Tax Service (NTS) unveils that a staggering 70% of all declared overseas assets were in cryptocurrency. To put it in numbers, of the entities that reported, 1,432 entities, both individual and corporate, declared that they hold approximately $98 million in crypto abroad.

Zooming out, this year’s NTS data suggests that 5,419 entities reported their foreign financial accounts. These encompassed a total asset value of around $140 million, distributed across various assets like cryptocurrencies, stocks, deposits, and savings. When considering sheer volume, while crypto led in asset value, deposit and savings accounts were more frequent in reports. Specifically, 2,952 entities reported holdings of about $17 million, and another 1,590 entities indicated they owned stocks amounting to roughly $17.6 million.

It's vital to mention the vigilant stance NTS is adopting. The tax body signaled its intent to monitor non-compliant entities keenly, emphasizing the incorporation of cross-border information, foreign exchange specifics, and other relevant notifications. They made it clear about the impending penalties for non-adherence, stating:

"As the landscape of virtual assets like cryptocurrency becomes more intricate, global tax authorities, including our National Tax Service, are gearing up for information exchange as mandated by the Information Exchange Reporting Regulations to curb potential tax base erosion."

South Korea's position in the crypto arena has been noteworthy. Recognized as a country that's friendly to cryptocurrency investment and transactions, it's been proactive in establishing a legal cryptocurrency framework and ensuring adherence. Highlighting this, millions in crypto assets have been seized from tax defaulters. The city of Cheongju, in August 2023, affirmed its strategy to intensify efforts in confiscating cryptocurrencies from local tax defaulters.

A significant decision to remember is the postponement of the anticipated 20% crypto gains tax. Initially set to roll out in early 2023, the South Korean government has now deferred this to 2025.