Korea National Tax Service: Overseas virtual asset exchanges going bankrupt, personal accounts must still be declared as overseas financial accounts

According to Digital Asset, the National Tax Service of South Korea has issued regulations stating that even if overseas virtual asset (digital asset) exchanges go bankrupt, individuals with accounts at those exchanges must declare those accounts as overseas financial accounts. The National Tax Service stated on the 28th of last month: "Residents who open accounts with overseas virtual asset operators for the purpose of trading digital assets must declare those accounts as overseas financial accounts, even if the operators go bankrupt."

In addition, it is expected that the scale of digital assets included in the overseas financial account declaration will reach 105 trillion Korean won by 2026, a decrease of 5.4% compared to 2025.