South Korea’s National Tax Service (NTS) has been on the agenda with a recent statement regarding crypto assets in the country. He states that cryptocurrencies, including Bitcoin, play an important role in the country. It also reveals a significant increase in the country’s overseas assets. NTS reported 1,432 offshore cryptocurrency accounts held by both individuals and companies this year. These digital assets, worth approximately 130.8 trillion Korean won (equivalent to $98 million), attract attention. It currently accounts for more than 70% of the country’s total reported offshore assets.
Cryptocurrency dominance in foreign assets
NTS data provides valuable insight into South Korea’s financial environment. It also reveals that 5,419 organizations reported their offshore financial assets. These organizations collectively have assets of KRW 186.4 trillion, equivalent to $140 million. Cryptocurrencies lead in terms of asset value. A closer look reveals that deposit and savings accounts generate the largest number of reports. There is a total of 22.9 trillion KRW, or approximately $17 million, in these accounts. Accordingly, 2,952 individuals and companies have declared their assets. Additionally, 1,590 institutions say they own shares worth KRW 23.4 trillion ($17.6 million).
Despite being known as a crypto-friendly country, South Korea is taking a strict approach to combating tax evasion in the cryptocurrency sector. This also results in millions of dollars of digital assets being seized from tax criminals. As a recent example, the city of Cheongju in South Korea in August 2023 underlines the government’s unwavering resolve. Accordingly, it reiterates its commitment to seize cryptocurrency assets from local tax criminals.
The competent authority is taking important steps
The South Korean National Tax Service enforces reporting requirements for offshore financial accounts. In fact, he leaves no stone unturned in this regard. The authority is intensifying its enforcement efforts. On the other hand, it promises to impose fines on those who do not comply with these regulations. To ensure compliance, NTS actively receives cross-border information exchange data. It also collects foreign exchange data and relevant agency notifications.
As Kriptokoin.com, it should be noted that the South Korean government recently postponed the implementation of a 20% tax on cryptocurrency earnings. It was initially on target to come into force in early 2023. However, this tax has been rescheduled for 2025, giving stakeholders more time to prepare for its impact.
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