South Korean Taxpayers Declared Crypto Assets: They Account for More Than 70% of Overseas Assets

Crypto News – According to the South Korean tax office, as a result of the country’s introduction of reporting requirements for overseas cryptocurrency holdings this year, taxpayers disclosed cryptocurrency assets worth a total of 130.8 trillion won ($98.5 billion) this year.

South Korean Taxpayers Declared Crypto Assets: They Account for More Than 70% of Overseas Assets

A total of 1,432 people and businesses disclosed their foreign cryptocurrency assets, according to a statement from the National Tax Service. Yonhap, a local news source, reports that the nation compels Korean citizens who own assets worth more than 500 million won, including cryptocurrency, in foreign accounts, to declare their holdings.

According to the tax administration, Korean taxpayers’ stated overseas cryptocurrency holdings made up 70.2% of all reported foreign assets’ total value. Based on the official data, a total of 5,419 entities disclosed their foreign-held financial assets, which included equities, deposits, savings, and cryptocurrencies. 186.4 trillion KRW were the total values of these assets.

The Number of Deposit and Savings Account Users Breaks Record

Despite the fact that cryptocurrency had the highest reported asset value, deposits, and savings accounts had the most reports. 2,952 people and businesses revealed holdings in savings and checking accounts totaling 22.9 trillion KRW. A total of 23.4 trillion KRW worth of equities were also revealed to be owned by 1,590 different companies.

This significant change in asset reporting can be traced to this year’s initial inclusion of virtual asset accounts in the reporting requirements. In order to carefully check non-compliant reports and implement penalties, such as fines, notices, and potential criminal charges, the NTS aims to use data from worldwide information exchange.

South Korea Passed a Law to Protect Crypto Investors

A law designed to better safeguard cryptocurrency investors was passed by South Korean lawmakers in June. The Financial Services Commission and the Bank of Korea now have the power to regulate cryptocurrency operators and asset custodians thanks to the new law, which is made up of 19 bills relating to cryptocurrencies. In situations when virtual assets are traded unfairly, the new measure also gives authorities the power to impose sanctions.

According to new accounting regulations announced by the FSC in July, domestic enterprises will be required to report their cryptocurrency holdings starting in 2019. The new regulations would also call for disclosures from cryptocurrency issuers including internal accounting procedures, business strategies, and token specifics.