South Korea’s National Tax Service ruled that residents must continue reporting qualifying accounts at bankrupt overseas cryptocurrency exchanges even when trading and withdrawals are unavailable. The obligation applies when combined balances in foreign financial accounts exceed 500 million won at any month-end during a year, with declarations due in June of the following year. The ruling concerns disclosure rather than whether frozen assets create taxable income. Digital assets have been covered by the foreign-account reporting regime since 2023, while self-custody wallets are excluded because they are not accounts with overseas virtual-asset service providers. Korean taxpayers disclosed 10.5 trillion won in overseas digital assets in the 2026 reporting cycle, down 5.4% from a year earlier. Individual holdings rose 5.4% to 9.8 trillion won, while corporate holdings fell 61.1% to about 700 billion won. South Korea separately plans a combined 22% tax on qualifying digital-asset income from Jan. 1, 2027.