South Korea Leads in Digital Asset Ownership

South Korea Leads in Digital Asset Ownership! South Korea’s National Tax Service has recently released a report revealing that South Korean citizens hold approximately 131 trillion won (around $99 billion) in digital assets abroad. This staggering figure, published in the report, underscores the growing prominence of digital assets in the global financial landscape.

According to the report, a remarkable 70% of South Korean citizens’ foreign assets are comprised of digital assets, making South Korea the leading nation in terms of overseas digital asset ownership.

The National Tax Service has identified that these assets belong to 1,432 individuals and entities. Official data indicates that a total of 5,419 organizations have reported their foreign financial accounts.

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In response to this substantial influx of digital wealth, the tax authorities have announced their intent to conduct a thorough examination of those who have not disclosed their foreign financial accounts. Furthermore, individuals engaging in irregularities related to their overseas funds will also undergo comprehensive scrutiny.

The Tax Service explained:

“To address the potential erosion of the tax base due to virtual assets, tax authorities worldwide, including the National Tax Service, are preparing to exchange information by the Information Exchange Reporting Regulations.”

South Korea has positioned itself as a cryptocurrency-friendly nation, notably postponing the implementation of a 20% tax on cryptocurrency gains to July 2023. Originally slated to take effect at the beginning of 2023, the government has opted for a two-year delay until 2025.

In addition to the delayed taxation, the tax authorities have indicated their intention to begin taxing airdrops, further emphasizing the government’s commitment to regulating the cryptocurrency space.

South Korea’s accommodating stance toward cryptocurrencies has led to a rapid increase in the number of users investing in digital assets within the country. The government has affirmed its crypto-friendly status and continues to work on initiatives to foster growth in this sector. As a result, South Korea Leads in Digital Asset Ownership