South Korea’s National Tax Service (NTS) has clarified that residents’ income from transferring or lending digital assets is taxable regardless of whether the assets are held in private wallets or on overseas exchanges, Digital Asset reported. The agency acknowledged practical limits in identifying all unreported private-wallet activity but plans to introduce transaction-tracking and analysis programs to reduce tax blind spots. The move broadens enforcement beyond its previous focus on domestic exchange holdings and follows the country’s wider effort to formalize digital-asset oversight, including the Virtual Asset User Protection Act, which took effect in 2024, and discussions about a dedicated crypto regulatory body. The NTS is also reviewing tax standards for staking (locking crypto to earn rewards), lending, airdrops and hard forks, with rules potentially reflecting the characteristics of each activity. South Korea’s approach parallels international transparency initiatives such as the OECD’s Crypto-Asset Reporting Framework (CARF) and the EU’s DAC8 directive.