According to CoinMeta, on August 28th, the National Tax Service of South Korea ruled that residents must continue to declare qualified cryptocurrency accounts held with bankrupt overseas exchanges, even if they are unable to trade or withdraw from them. In response to a query from a resident, the tax service stated that balances in inaccessible exchanges still qualify as overseas financial accounts. The taxpayer was a creditor of an overseas cryptocurrency exchange that went bankrupt in November 2022; account holders were unable to trade or withdraw their assets and had entered the exchange’s distribution process. The tax service confirmed that the original overseas accounts still need to be declared because they were opened with external virtual asset service providers. South Korean residents and domestic companies are generally required to declare when the balance of their overseas financial accounts exceeds 5 million Korean won (approximately $350,000) at the end of any month. Digital assets have been included in the overseas financial account system since the 2023 reporting cycle. Accounts from bankrupt exchanges can be declared together with foreign deposits, securities, funds, and other covered financial assets. The tax service also stated that customers of bankrupt exchanges can still retain declarable accounts or claims against the exchanges after losing normal control over their assets.