On September 20, South Korea’s National Tax Service (NTS) made a significant disclosure. They revealed that 1,432 entities have reported their cryptocurrency holdings from foreign accounts this year.
Overwhelming Crypto Dominance in Overseas Assets
The crypto revelation is astounding. The reported cryptocurrency value stands at a whopping 130.8 trillion South Korean won, equivalent to $98 million. Remarkably, this constitutes over 70% of the entire declared foreign assets. When we broaden the lens, the data shows that 5,419 entities disclosed overseas financial accounts. These accounts collectively amass 186.4 trillion won ($140 million), encompassing assets from cryptocurrencies and stocks to savings.
Among the vast sea of cryptocurrencies, Bitcoin stood out. It grabbed the lion’s share in South Korea’s latest overseas assets report by the NTS.
However, it’s not all sunshine and rainbows. The NTS has laid down a stern warning. They aim to intensify their scrutiny on non-compliant entities. They are well-prepared with tools like cross-border information, foreign exchange data, and related agency notifications. Their message is clear: those neglecting to report overseas accounts will face repercussions. To elucidate, the NTS said:
“To combat the potential tax risks from virtual assets, global tax bodies, including ours, are aligning for information exchange under the Information Exchange Reporting Regulations.”
South Korea’s Cryptocurrency Landscape
South Korea’s affinity for cryptocurrencies is evident. Over the years, they’ve firmly established themselves as a significant crypto-friendly nation. Their keen focus on cryptocurrency taxation has resulted in the seizure of millions from evaders. A testament to this is the recent move by Cheongju in August 2023, announcing intentions to seize cryptocurrency from local tax defaulters.
While crypto assets have made headlines, it’s crucial to note other significant overseas assets. Deposits and savings, for instance, led in the number of reports. 2,952 entities declared holdings of 22.9 trillion won ($17 million). Following closely, 1,590 entities reported stock assets worth a close 23.4 trillion won ($17.6 million).
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