The South Korean government has initiated a practical approach where information on national and foreign cryptographic transactions will be registered and shared with the National Tax Service.
According to a local report on Tuesday, the initiative will share cryptographic transactions by non -residents in local exchanges such as Upbit and Bithumb, with countries around the world. In addition, the transactions history of national investors in exchanges abroad will be shared with the Tax Department.
South Korea officially joins the OECD cryptographic report framework
In November 2023, South Korea joined a group of 48 nations to implement the framework of international reports on digital assets.
Nicknamed the crypto asset report frame (CARF), the structure would facilitate the automatic tax information exchange on transactions that involve cryptography in a standardized way.
The Ministry of Economy and Finance of Korea has officially signed an agreement for the implementation of CARF in the Organization for Economic Cooperation and Development (OECD), according to Tuesday’s report.
“The purpose is to establish detailed regulations to implement the agreement to exchange virtual asset information,” said a ministry official.
Ministry to issue an administrative notice this month
The Ministry plans to issue an administrative notice this month, detailing the implementation of regulations for the CARF.
The tax authorities, including the United Kingdom, Germany and Japan, are looking for the framework to avoid tax evasion on the high seas, as well as increase fiscal transparency through cryptography.
With the system, investors can expect a great repression in anonymous trade.
In addition, Upbit and Bithumb can face winds against winds against low term and possible volume drops as users based on privacy revolve. This is due to the fact that national cryptographic operators report personal information and information on residents of associated countries, starting next year.
In addition, each country will load this information to the OECD system to track the history of cryptographic transactions abroad.
The information exchange system will begin in 2027, however, the transaction records will begin next year, the report added.
“The exchange of virtual assets information is governed by international agreements,” said a ministry official, adding that “it is a separate issue of taxes.”
The publication of South Korea to share data on cryptographic transactions worldwide: the report appeared first in Cryptonews.
