South Korea excludes decentralized crypto wallets from overseas filings
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South Korea’s National Tax Service (NTS) has updated its stance on virtual assets.
exist new statement, NTS clarified its stance on decentralized crypto wallet owners. Therefore, individuals who own virtual assets through non-custodial decentralized wallets such as MetaMask will not be required to report offshore financial accounts.
“Overseas operators only provide programs for storing and storing personal encryption keys, etc., and have no control over them. Therefore, they do not participate in the sale, purchase or exchange, nor participate in the holding of virtual assets in wallets such as cold wallets. They are not subject to overseas Constraints on Financial Account Reporting.”
NTS Statement
The service’s stance became clearer after NTS included virtual assets in reporting overseas financial accounts from June 2023, requiring users with assets exceeding 500 million won to declare.
“Reporting overseas financial accounts is for reporting purposes because there are restrictions on obtaining overseas tax data, but there is a dispute as to whether the Metamask wallet is an overseas wallet.”
Kim Ji-ho, NTS accountant
Meanwhile, Korean interest in cryptocurrencies continues to grow. In November 2023, the South Korean team won transcend Cryptocurrency exchange trading volume surpassed that of the U.S. dollar for the first time. Traders from Asia, especially South Korea, have been one of the driving forces behind the growth in trading volumes on cryptocurrency exchanges over the past few months. In November 2023, South Korean exchanges’ share of total cryptocurrency trading volume rose to 12.9%, although in January 2023 this figure was only 5.2%.
