South Korea says crypto held in private wallets is also subject to tax

Income generated from digital assets held not only on domestic exchanges but also in private wallets and overseas exchanges is subject to taxation, Digital Asset reported. South Korea’s National Tax Service said income earned by residents from transferring or lending digital assets is taxable regardless of whether the assets are held on overseas exchanges or in private wallets. The agency said there are practical limits to fully identifying unreported transaction data from private-wallet activity, but it will work to prevent tax blind spots by introducing transaction-tracking and analysis programs. It added that both agencies are reviewing taxation standards for digital assets obtained through staking, lending, airdrops, and hard forks, taking into account the characteristics of each type of activity.