South Korea’s National Tax Service said individuals must continue to report overseas financial accounts tied to offshore virtual asset operators even if those operators have gone bankrupt. The rule applies to residents who opened accounts with overseas virtual asset businesses for digital asset trading. According to the tax authority, bankruptcy of the exchange or operator does not remove the filing requirement for account holders. The National Tax Service also said digital assets included in overseas financial account reporting are expected to reach KRW 10.5 trillion in 2026, down 5.4% from 2025. The update clarifies that reporting obligations remain in place regardless of the operating status of the foreign exchange where the account was held.
South Korea’s National Tax Service has issued a rule saying individuals must still report accounts held with overseas virtual asset operators as overseas financial accounts, even if the exchange or operator has gone bankrupt.
According to the tax authority, residents who opened accounts with overseas virtual asset businesses for digital asset trading are still subject to the reporting requirement after the operator’s bankruptcy. The National Tax Service said digital assets expected to fall within overseas financial account reporting will reach KRW 10.5 trillion in 2026, down 5.4% from 2025.
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