South Korea Plans Sharing Crypto Transactions Data Globally

South Korea announced that it will start sharing cryptocurrency transaction data with global tax authorities. This is a part of a broader international effort to curb tax evasion and improve transparency in virtual asset markets. 

According to local reports, under the Crypto-Asset Reporting Framework (CARF), South Korea will report foreign nationals’ crypto trades on local platforms like Upbit and Bithumb to the users’ respective home countries. 

The CARF system is designed to automatically exchange information on virtual asset transactions each year among 48 countries, including the UK, Germany, and Japan. Its goal is to combat offshore tax evasion and enhance tax transparency in the virtual asset space. 

Under this system, the government will also collect and share information on Korean residents trading on overseas exchanges with the National Tax Service (NTS). However, the terms of the framework’s agreement state that an exchange of data by a country can only take place if the partner state also agrees to share their data with it. 

Meanwhile, the data collection is set to begin in 2026, with full-scale information exchange expected in 2027.

OECD Agreement Sets Global Standard

South Korea’s decision comes after the Multilateral Competent Authority Agreement (MCAA) was signed by South Korea at the OECD Global Forum in November 2023. 

“The purpose is to establish detailed regulations for implementing the Virtual Asset Information Exchange Agreement,” a Ministry of Economy and Finance official said. 

This month, the ministry will issue an administrative notice outlining how CARF will be enforced domestically. The regulation will require Korean exchanges to report personal and transactional data of foreign users, while also enabling local authorities to monitor Korean nationals’ crypto activity abroad. 

“Virtual asset information sharing is governed by international agreements,” another ministry official added, clarifying, “It is a separate matter from taxation.”

South Korean authorities believe the new framework will deter anonymous or privacy-driven trading, forcing platforms like Upbit and Bithumb to enhance compliance measures. This could temporarily impact trading volumes as some users exit.

Despite delaying its crypto tax implementation until 2027, the government’s early adoption of CARF signals growing pressure on crypto holders worldwide to disclose offshore activity. 

Also Read: South Korea FSC Nominee Criticized for Saying Crypto Has No Value