South Korea Requires Reporting on Crypto Accounts at Bankrupt Overseas Exchanges

South Korea's National Tax Service (NTS) has clarified that residents must report cryptocurrency accounts held with overseas exchanges, even if those platforms have gone bankrupt.

The ruling applies to accounts opened with virtual asset service providers for digital asset transactions, regardless of the exchange's current status.

The NTS said an account remains subject to reporting under South Korea's Adjustment of International Taxes Act, which requires residents and domestic companies to report overseas financial accounts when the combined balance exceeds 500 million won ($361,000) at the end of any month during the year.