South Korea tightens controls on cold cryptocurrency wallets as part of tax campaign

10.07.2025

South Korea is strengthening tax controls on cryptocurrency assets, focusing on cold wallets, as part of a new strategy to ensure transparency and tax compliance. Starting July 2025, the country's tax authorities are implementing additional monitoring and reporting measures to prevent tax evasion among digital asset holders.Under the updated rules, cryptocurrency cold wallet holders storing digital assets outside of online exchanges will be required to provide detailed reports on their assets. South Korea's tax authorities note that the total amount of digital assets held outside regulated platforms exceeded 11 trillion won (about US$8 billion) in 2024, prompting authorities to tighten controls on such wallets.These measures include:

• Requiring the declaration of cryptocurrency assets held on cold wallets when filing tax returns.
• Increasing sanctions for concealing or misreporting information on digital assets.
• Introduction of new tools for analyzing and monitoring blockchain transactions.

According to the National Tax Service, these steps are expected to increase tax revenues and reduce tax evasion among private investors and companies. The new rules are also designed to increase confidence in the digital asset market and create a more transparent ecosystem for market participants.Cryptocurrency holders are advised to read the new requirements carefully and ensure that they fulfill all tax obligations in a timely manner to avoid penalties and other consequences.