South Korea's Cryptocurrency Surge

South Korea's National Tax Service (NTS) revealed that cryptocurrencies, including Bitcoin, constitute a significant portion of the nation's overseas assets. NTS reported 1,432 overseas cryptocurrency accounts this year from individuals and corporations. Over 70% of the nation's reported overseas assets are digital assets, valued at 130.8 trillion Korean won (approximately $98 million).

The data from the NTS reveals the nation's financial landscape, with 5,419 entities declaring their overseas financial holdings. These entities collectively amass 186.4 trillion KRW (equivalent to $140 million) in various assets, including cryptocurrencies, stocks, and deposit and savings accounts.

While cryptocurrencies dominate the list regarding reported asset value, a closer look reveals that deposits and savings accounts take the lead in the number of reports. A staggering 2,952 individuals and companies have reported holdings in these accounts, amounting to 22.9 trillion KRW (approximately $17 million). In addition, 1,590 entities have declared ownership of stocks valued at 23.4 trillion KRW ($17.6 million).

‍

Taking a Strong Stand on Crypto Taxes

South Korea, known for its crypto-friendly stance, has been cracking down on tax evasion, confiscating millions of dollars in cryptocurrency from tax delinquents.

In August 2023, the South Korean city of Cheongju reiterated its commitment to seizing cryptocurrency from local tax delinquents, further emphasizing the government's resolve.

South Korea's National Tax Service is leaving no stone unturned when enforcing reporting requirements for overseas financial accounts. The authority has vowed to escalate its inspection efforts and impose fines on those not complying with these rules. To ensure compliance, the NTS has been collecting cross-border information exchange data, foreign exchange data, and relevant agency notification data.

Worth noting that the South Korean government recently postponed the implementation of a 20% tax on cryptocurrency gains. Originally scheduled to take effect in early 2023, the tax has been pushed back to 2025.