South Korea’s Reported Overseas Crypto Holdings Dip 5.4% as Prices Slide

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South Korea’s Reported Overseas Crypto Holdings Dip 5.4% as Prices Slide

South Korea’s National Tax Service (NTS) reported that the value of overseas cryptocurrency holdings declared by residents and domestic corporations fell to 10.5 trillion won (approximately $7.6 billion) this year, a 5.4% decline from 11.1 trillion won a year earlier, according to a report by Dailian. The drop is attributed to a broader downturn in cryptocurrency prices during the reporting period.

Decline in Value, Rise in Filers

Despite the decrease in total reported value, the number of filers increased by 1.8% to 2,362, up from 2,320 in the previous year. This divergence suggests that while more individuals and companies are complying with reporting requirements, the market value of their holdings has contracted. The NTS data, which covers virtual assets held in foreign exchanges and wallets, reflects the impact of price volatility on South Korean investors’ overseas crypto portfolios.

The reported figures are part of South Korea’s broader efforts to increase tax transparency on overseas assets. Since 2022, residents and corporations have been required to report foreign financial accounts, including cryptocurrency holdings, if the balance exceeds a certain threshold. The NTS uses this data to monitor potential tax evasion and ensure compliance with global tax standards.