S. Korea: Bankruptcy of overseas crypto exchange doesn’t exempt account reporting

TREE NEWS update: South Korea’s National Tax Service ruled that individuals with accounts at overseas virtual asset exchanges must report them as foreign financial accounts even if the exchange goes bankrupt. The NTS stated on August 28 that residents trading digital assets must declare such accounts regardless of the operator’s insolvency. Digital assets subject to overseas account reporting are expected to reach 10.5 trillion won in 2026, down 5.4% from 2025.