Data from a new South Korean tax report has revealed details of hundreds of crypto whales holding millions of dollars worth of coins on overseas crypto exchanges.
New tax rules that came into effect this year require cryptocurrency holders to declare their holdings in foreign crypto platforms.
According to South Korean media Economistthe data was requested by MP Yang Kyung-sook, a member of the National Assembly’s Planning and Finance Committee, and submitted by the National Tax Service (NTS).
The data was anonymized before being made public, but indicates that the NTS now has the identities of hundreds of high-value crypto holders.
Data highlights include the following:
- 619 Seoul residents declared a total of $6 billion of overseas crypto holdings
- 325 people in Gyeonggi province (the country’s wealthiest region) reported a total of $806 million in crypto holdings abroad.
- In the southern city of Daegu, 45 people reported a combined total of $117 million
- In the port city of Incheon, 55 people reported a combined total of $99 million
People over the age of 30 reported the highest amount of crypto holdings.
The average person in this age group reported holding more than $15.7 million in foreign exchanges and portfolios
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South Korean law requires individuals and corporations whose overseas assets exceed $370,000 to report details of their holdings to the NTS.
In the past, this only applied to cash, stocks, bonds, collective investment securities and conventional derivatives.
But the new tax reporting system means that, since last year, crypto must also be included in returns.
The NTS did not disclose details about the type of currencies South Koreans hold abroad, or the identity of the platforms where they hold their tokens.
“We expect data related to virtual currency to continue to accumulate. The NTS should actively encourage (people and businesses) who hold virtual currency to report faithfully.”
The deputy concluded:
“We must carefully avoid (crypto-fueled) tax evasion.
Earlier this month, financial regulators announced that the country’s crypto market saw a surge in the first half of the year, reaching a total capitalization of $21.1 billion.