South Korean Government Prepares Cross-State Crypto Transaction Data Exchange

JAKARTA - The South Korean government has begun to prepare technical procedures to share information on crypto asset transactions including Bitcoin which take place on domestic exchanges such as Upbit and Bithumb with tax authorities in various countries.

Based on information from local media, the Korean Ministry of Strategy and Finance stated that the rules for implementing the detailed Crypto-Asset Reporting Framework (CARF) will be announced this month.

CARF is an automated exchange of crypto asset information system initiated by 48 countries, including the UK, Germany, and Japan, to increase tax transparency and prevent cross-border tax evasion.

In addition, South Korea's Ministry of Economy and Finance also officially signed a Multilateral Information Exchange Agreement (MCAA) for the implementation of CARF at the Organization's Global Forum for Economic Cooperation and Development (OECD) which was held in November last year.

Launching M News Net, a ministry official stated, "The goal is to establish detailed regulations to implement a Virtual Asset Information Exchange Agreement."

Although the full exchange applies in 2027, transactions since next year will be reported. Records of transactions of Korean investors on foreign exchanges will also be distributed to the Directorate General of Taxes Korea.

The Korean government insists that this information exchange is an international obligation, apart from the tax policy.