South Korea’s tax agency says coins on bankrupt offshore exchanges must still be reported

South Korea’s National Tax Service said residents must still file overseas financial account reports for accounts held with offshore virtual asset service providers for digital asset trading even if the exchange has gone bankrupt, according to Digital Asset. The agency said on Aug. 28 that if a resident holds an account opened with an overseas virtual asset service provider for digital asset trading, the account remains subject to overseas financial account reporting obligations even after the provider goes bankrupt. Separately, the total amount of digital assets reported in overseas financial account filings for 2026 came to 10.5 trillion won, down 5.4% from 2025.