South Korea Cracks Down on Crypto Accounts at Overseas Exchanges

South Korea's National Tax Service (NTS) has clarified its stance on cryptocurrency accounts held at bankrupt overseas exchanges. Residents with combined overseas financial account balances above ₩500 million must report them to the NTS by the following June.

The clarification was made after a resident asked whether an account with a bankrupt overseas crypto exchange remained subject to the country's foreign financial account reporting rules. The account could no longer be used for normal trading or withdrawals, and the assets had become part of the bankruptcy process.

The NTS stated that an account opened with an overseas virtual asset service provider remains subject to reporting even if the exchange later becomes insolvent. This ruling focuses on the account reporting requirement and does not determine whether the assets are subject to additional tax.