South Korea orders residents to report overseas crypto even if exchange fails
South Korea’s National Tax Service has clarified that residents holding cryptocurrencies on foreign exchanges are required to declare those assets under the country’s foreign-account disclosure rules, even if the exchange is bankrupt or access to funds is blocked. The ruling was issued after a resident, who served as a creditor for an overseas crypto exchange that collapsed in November 2022, asked whether they still needed to declare digital assets they could not access.