According to a local media report, South Korea is planning to develop a cryptocurrency-focused asset management system by 2025 to combat tax evasion.
The National Tax Service has chosen GTIC as the lead business to build the system, which will analyze and manage data from cryptocurrencycurrency trading platforms in order to ensure compliance with the future cryptocurrency gains tax, which will go into effect in January 2025.
The measure follows a restriction on South Korean financial institutions marketing bitcoin exchange-traded funds (ETFs). The virtual asset integrated management system is intended to address growing concerns about unlawful transactions involving the anonymity of virtual assets, such as money laundering and offshore tax avoidance.
The proposal is consistent with global trends, with the EU and the United States both establishing legislation and tax reporting requirements for cryptocurrencycurrency. The National Tax Service believes the method would improve transparency, combat tax evasion, and promote fair taxation in the rapidly expanding virtual asset market.
The project is expected to publish a request for proposal and begin in 2025, following four months of consultation with GTIC.
