South Korea Mandates Overseas Crypto Account Reporting Despite Exchange Failure
National Tax Service extends foreign financial account rules to insolvent overseas crypto platforms; 10.5 trillion won projected for 2026.
South Korea’s National Tax Service has stated that residents must report accounts held on overseas virtual asset exchanges as foreign financial accounts regardless of whether the operator later becomes insolvent.
Scale of assets covered
The obligation applies to any resident who opens an account with a foreign platform to trade digital assets.
The agency projects that 10.5 trillion won in digital assets will fall under the overseas reporting requirement in 2026, down 5.4 percent from the 2025 figure.
Open questions
Details on enforcement, applicable penalties, and the practical effect on individual compliance remain unspecified.