Coinspeaker
South Korea Issues Warning to Citizens: Declare Overseas Crypto Holdings or Face Prosecution

As different countries try to find a balance in financial and crypto regulation, South Korea has issued a new warning to crypto holders to declare their overseas crypto exchange holdings or face prosecution which is part of its plan to create more stringent guidelines. A recent report revealed that digital assets held on exchanges outside South Korea are considered overseas assets.

Mandatory Reporting of Overseas Financial Accounts

The warning, which was revealed on MoneyS by Daekyung Kim, Tax accountant at Hana Bank Asset Management Group, stated that June 30 had been earmarked for reporting overseas financial holdings. The release mentioned that under the Income Tax Act, domestic residents whose total balance across all overseas financial accounts is above 500 million won at the end of any month must ensure they declare these accounts to authorities by June 30 every year.

He further mentioned that although this regulation is now in place, authorities still have a way of knowing residents...