In a significant move, South Korea’s National Tax Service has clarified its stance on virtual assets, providing much-needed clarity for decentralized crypto wallet holders. The National Tax Service announced that individuals holding virtual assets through non-custodial, decentralized wallets, including cold wallets, will not be subject to overseas financial account reporting.
Meanwhile, this decision comes in the wake of the National Tax Service’s inclusion of virtual assets in overseas financial account reporting from June 2023, requiring declarations from users with holdings exceeding 500 million won. Notably, the clarification brings relief to many crypto enthusiasts uncertain about reporting requirements for decentralized wallets.
