12/03/24

ASIA: South Korea Plans Crypto Asset System to Combat Tax Evasion

As published on: cryptotimes.io, Monday 11 March, 2024. 

South Korea is gearing up to launch a crypto-focused asset management system by 2025 to curb tax evasion, as reported by local news.

Following the approval of Bitcoin ETF trading in the US, investment in virtual assets is surging, prompting governments to prioritize taxation and monitor illegal transactions like money laundering.

The National Tax Service has appointed GTIC to lead the virtual asset integrated management system ISP project, aiming to analyze and manage transaction details effectively to combat illegal activities.

The system aims to streamline the analysis and management of virtual asset transaction details submitted mandatorily. A request for a proposal for system construction has been issued based on consulting outcomes, with the system slated for a 2025 launch.

The move follows the ban on South Korean financial institutions from offering cryptocurrency exchange-traded funds (ETFs). The virtual asset integrated management system is designed to address rising concerns about illegal transactions tied to the anonymity of virtual assets, including money laundering and offshore tax evasion.

The initiative aligns with global trends, with the EU and the US also enacting regulations and tax reporting requirements for cryptocurrencies. The National Tax Service anticipates that the system will enhance transparency, combat tax evasion, and promote fair taxation in the rapidly growing virtual asset market.

The project is expected to issue a request for proposal and commence in 2025 after four months of consulting with GTIC.

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Asia South Korea Crypto Assets Tax Evasion