Overview
South Korea stands tall as the most dominant force in the world of cryptocurrency trading. With the recent data revealing that 70% of the nation’s declared foreign assets are in cryptocurrencies, the nation’s fascination with digital assets is evident.
Upbit’s Influential Data
South Korea’s fondness for cryptocurrency trading isn’t a secret. The data from Upbit, a prominent South Korean cryptocurrency exchange, is closely watched by those keen on contract data analysis.
Korea’s National Tax Service (NTS) Report
The NTS recently disclosed statistics on the country’s declared foreign assets. The count stands at 5,419 overseas financial accounts, encompassing both businesses and individuals.
Cryptocurrency Dominates Overseas Assets
According to the report, the total overseas assets, including virtual assets, stocks, and deposits, amount to 186.4 trillion KRW (~1.4 billion USD). Significantly, virtual assets alone account for a staggering 130.8 trillion KRW (~980 million USD), which is over 70% of the total value. The number of accounts holding virtual assets is 1,432, taking up 20.7% of the total.
Deposits and Stocks Follow
Though virtual assets top in terms of value, in terms of sheer account numbers, deposit and savings accounts lead with 2,952 accounts holding 22.9 trillion KRW (~17 million USD). Meanwhile, 1,590 accounts declared stocks worth 23.4 trillion KRW (~17.6 million USD).
NTS’s Vigilant Stance
The NTS warned of stringent checks on undeclared overseas financial accounts. With the collation of cross-border information exchange data, foreign exchange data, and other institutional data, they plan to penalize those violating the regulations.
Regulation Tightens for Crypto Issuers
As cryptocurrency gains traction in South Korea, regulatory oversight is also increasing. The Financial Services Commission announced in July a plan to enhance transparency in cryptocurrency accounting. From the next fiscal year, it will be mandatory to disclose details of virtual assets in the financial statement footnotes.
Mandatory Disclosures for Virtual Asset Issuers
Entities issuing virtual assets need to elucidate on the scale and risk factors of the assets in their financial report footnotes. They must also detail the company’s virtual asset holdings, the purpose of holding, and future utilization plans. Information on the primary content of the issuance contracts, project progress, and obligations to be met by the issuer is essential.
Public Companies and Virtual Asset Operators
Public companies holding virtual assets for investment purposes will have to specify the acquisition method and market value, for instance, highest and lowest prices of the virtual asset.This initiative is designed to give investors a direct insight into the company’s cryptocurrency investments. Meanwhile, virtual asset operators like exchanges are required to disclose customer-entrusted virtual asset quantity, market value, and security levels against hacking.Keywords: South Korea, Cryptocurrency, Trading, Upbit, National Tax Service, Virtual Assets,Regulation, Financial Services Commission, Virtual Asset Issuers, Public Companies
Keywords: South Korea, Cryptocurrency, Trading, Upbit, National Tax Service, Virtual Assets, Regulation, Financial Services Commission, Virtual Asset Issuers, Public Companies
