South Korea tightens controls on overseas crypto assets

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The South Korean tax agency just released an important report on overseas cryptocurrency assets. Accordingly, there are 1,432 domestic individuals and businesses holding a total of about 131 trillion won (equivalent to about 99 billion USD) in cryptocurrency assets abroad. This is impressive when it accounts for 70% of the total foreign assets that Korean people have disclosed this year.

Not only crypto assets, data also shows that Koreans are investing significantly in stocks, deposits and savings abroad. A total of 5,419 organizations have disclosed overseas assets worth 186.4 trillion won (about $140 billion). Tax authorities are currently conducting checks on those who do not comply with South Korea's legal requirements, which require citizens to report assets held abroad if they exceed 500 million won.

Additionally, the Financial Services Commission (FSC) is focusing on enhancing oversight of OTC cryptocurrency trading. Recently, Deputy Public Prosecutor Ki No-Seong spoke clearly about the need to implement comprehensive regulations on OTC cryptocurrency trading, as illegal OTC trading companies often have branches abroad and is engaging in illegal conversion of cryptocurrency into won or foreign currency.

Notably, the FSC cited a case in which three people were arrested last year for purchasing 94 billion won (about $70.9 million) worth of cryptocurrency through OTC trading. The incident is XEM as a strong warning message about the risks associated with transactions in this form.

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