South Korea's NTS to Receive Overseas Crypto Account Data from 2027, Tightening $500M+ Disclosure Requirements

According to Dong-A Ilbo, South Korea's National Tax Service will begin receiving overseas cryptocurrency trading information in 2027 as part of the Common Reporting Standard for Cryptoassets (CARF), a multilateral information exchange framework involving 48 countries. Domestic residents have been required to report overseas virtual asset accounts exceeding 500 million won (approximately $375,000) since 2023, aligning with foreign financial account disclosure obligations.

Failure to disclose overseas crypto holdings of 5 billion won or more may result in criminal penalties and public naming. Penalties for non-disclosure are set at 10 percent of unreported amounts up to 1 billion won per violation year. However, voluntary disclosure before tax authorities initiate investigations can reduce penalties by up to 90 percent, according to NH Investment & Securities Tax Center.