South Korea tightens grip on undeclared overseas crypto worth $99B

TL;DR Breakdown

  • South Korea’s tax agency reports that citizens and businesses hold around $99 billion in overseas crypto assets.
  • A total of 1,432 individuals and entities are responsible for these crypto holdings.
  • The Financial Services Commission is focusing on over-the-counter cryptocurrency transactions.

Description

South Korea’s tax agency has reported that citizens and businesses in the country hold approximately 131 trillion won, or around $99 billion, in overseas crypto assets. This staggering figure accounts for 70% of all offshore assets disclosed by South Koreans this year. Moreover, the tax authority revealed that 1,432 individuals and entities are behind these … Read more

South Korea’s tax agency has reported that citizens and businesses in the country hold approximately 131 trillion won, or around $99 billion, in overseas crypto assets. This staggering figure accounts for 70% of all offshore assets disclosed by South Koreans this year. Moreover, the tax authority revealed that 1,432 individuals and entities are behind these substantial holdings.

Besides crypto assets, the tax agency’s data showed South Koreans have significant investments in stocks, deposits, and savings overseas. 5,419 entities disclosed offshore assets amounting to 186.4 trillion won, or roughly $140 billion. Consequently, the tax regulatory authority is scrutinizing those who fail to report their foreign assets. South Korean law requires citizens and residents to report overseas assets valued at 500 million won or more.

Additionally, the Financial Services Commission (FSC) is taking steps to intensify its focus on over-the-counter (OTC) cryptocurrency transactions. During a recent event at the ‘2023 3rd Supreme Prosecutors’ Office Criminal Law Academy,’ Deputy Chief Prosecutor Ki No-Seong emphasized the need for comprehensive regulations on OTC cryptocurrency trading. He pointed out that illegal virtual currency OTC companies often have overseas corporations and engage in converting illicitly obtained virtual currency into Korean won or foreign currencies.

Significantly, the FSC cited the indictment of three individuals arrested last year for illegally buying 94 billion won worth of crypto, approximately $70.9 million, via OTC trades. This example is a cautionary tale, highlighting the risks associated with unregulated OTC cryptocurrency transactions.

Hence, South Korean regulatory authorities are initiating monitoring measures to keep tabs on OTC cryptocurrency trading activities within the country. This move aligns with global trends where countries increasingly regulate cryptocurrencies to curb illegal activities, such as money laundering.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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