Korean tax authorities considering a novel platform to oversee all cryptocurrency transactions
Korea’s National Tax Service is aiming to create a new system for managing cryptocurrency transactions and combating illegal activities, with the goal of completing it by 2025. The tax service has entered into initial consultations with a consulting firm, GTIC, to develop a “virtual asset integrated management system” that will analyze and oversee data related to crypto transactions, as required by reporting regulations. The firm will provide consultation on the system’s development for approximately four months, and proposals for system construction will be based on the results of these consultations. The system is expected to be open and operational by 2025, addressing the need for regulatory measures in response to the increasing number of illicit crypto transactions. This move comes at a time when Bitcoin has experienced a significant surge in value, reaching $70,000 for the first time. The approval of spot Bitcoin exchange-traded funds in the US has further sparked interest in crypto and led to increased investment. Consequently, there is a greater need for taxation and monitoring of illegal transactions, including money laundering. Discussions within South Korea’s regulatory bodies, such as the Financial Supervisory Service, have taken place regarding the approval of spot Bitcoin ETFs. However, decision-making processes are complex due to differing views within the regulatory community and concerns about how Bitcoin should be classified under current financial laws.
