A new tax report from South Korea has unveiled the existence of numerous crypto whales who possess millions of USD worth of coins on international cryptocurrency exchanges. Starting this year, new tax regulations oblige crypto holders to disclose their holdings on foreign crypto platforms. According to the National Tax Service (NTS), the data was requested by MP Yang Kyung-sook, a member of the National Assembly’s Planning and Finance Committee. Although the data has been anonymized, it indicates that the NTS now possesses information about numerous high-value crypto holders.
The data from the report highlights noteworthy information:
People in Their 30s Hold the Highest Amount of Crypto
The report reveals that individuals in their 30s are the most significant holders of cryptocurrency. On average, people in this age group declared holdings of over $15.7 million on overseas exchanges and wallets.
New Tax Reporting System Includes Crypto
The tax regulations in South Korea now require individuals and corporations with overseas assets exceeding $370,000 to report their holdings to the NTS. While in the past, this only applied to cash, stocks, bonds, and conventional derivatives, the new tax reporting system includes cryptocurrency. This means that since last year, individuals must also declare their crypto holdings.
The NTS has not disclosed the specific cryptocurrencies held by South Koreans on overseas platforms, nor the platforms themselves. MP Yang expressed:
“The possession of crypto assets by a significant number of individuals demonstrates the popularity and influence of cryptocurrency in South Korea. It is crucial for the government to monitor and regulate this market to ensure its stability and security.”
The MP concluded that the tax report’s findings emphasize the need for strict regulations and oversight in the crypto market in order to safeguard investors and maintain financial stability and security.
Earlier this month, financial regulators reported that the South Korean crypto market experienced substantial growth in the first half of the year, reaching a total market cap of $21.1 billion.
