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Crypto Assets: A Big Slice Of South Korea’s Overseas Pie
South Koreans own a staggering $99 billion in virtual assets stashed outside their homeland, according to a recent report by the country’s National Tax Service.
To put that into perspective, this crypto wealth makes up a whopping 70% of all assets reported to be held overseas by South Koreans.
That’s a huge number.
The report also revealed that 1,432 individuals and corporations have reported holding these overseas crypto accounts.
Considering South Korea’s population is just shy of 52 million, that’s a small but influential group making a significant impact on the country’s foreign asset profile.
Keeping track of these foreign-held assets is important.
This year, South Korea put into effect a new rule requiring any national with foreign accounts exceeding 500 million won to declare them in June.
This is part of a wider global trend where countries are trying to figure out how best to tax virtual assets.
Looking ahead, South Korea is planning to tax crypto earnings by 2025.
They are also considering taxing airdrops, a common practice in the crypto world where free tokens are given to holders.
These steps signal that South Korea is adapting to the rise of digital assets and is prepared to regulate and tax them just like any other form of wealth. Read more here.
Crypto Boom In Sub-Saharan Africa Used To Offset High Inflation.
More Than Half Of Turkey Has Turned To Crypto Amid Rapid 50% Currency Devaluation.
Global Powerhouses At G20 Summit Shape Crypto Framework.
Hong Kong Embraces Crypto Sector with Robust Regulation.
Crypto Beyond Borders: How Zucoins Could Get An Edge?
South Korea’s citizens have shown a keen interest in virtual assets, as evidenced by the enormous $99 billion in crypto held overseas.
This not only reflects a global trend towards digital assets but also an opportunity for emerging cryptocurrencies like Zucoins.
Zucoins’ ground-up rethink on the industry’s long-term issues, from its truth-not-consensus based Splitchain network, resulting in benefits like no transaction fees, and robust two-factor transaction safety—not to mention many more innovations we cover here regularly, could attract these tech-savvy individuals looking for a reliable, efficient and next-generation crypto option.
The fact that 70% of all assets held overseas are in crypto form indicates a willingness to adopt newer, more efficient digital currencies.
Secondly, the mandatory reporting requirement for foreign accounts exceeding 500 million won highlights the need for transparency and accountability in the crypto world.
The Splitchain network underlying Zucoins can offer a solution here.
With transactions that are processed peer-to-peer, the sender and receiver do most of the heavy lifting when processing a transaction using the Zucoins wallet app on their own devices.
This makes it easier for users to self-manage and report their assets to various vendors and organizations as they need, placing more control back in their hands.
This feature could be particularly attractive to South Korean groups needing to meet these new reporting requirements.
Countries around the world are wrestling with how to tax virtual assets.
South Korea’s planned taxes on crypto earnings by 2025 suggest that the country is taking proactive steps to regulate this emerging space.
Zucoins has already taken many steps to align itself to where regulations are heading, aiming to future-proof the Splitchain protocol as much as they can.
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All the best,
Peter & Rob
MyZucoins
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.