South Korea to exchange virtual asset data under OECD framework

South Korea will begin implementing the OECD’s crypto asset reporting framework (CARF) next ￰0￱ framework allows for the exchange of virtual asset transaction information with countries around the world under the OECD reporting ￰1￱ to an exclusive report by Nate, the OECD’s framework will allow data on foreign investors who buy and sell Bitcoin and other crypto assets on Korean exchanges such as Upbit and Bithumb to be shared with overseas tax authorities. Additionally, details of Koreans trading on overseas platforms will be reported to the National Tax ￰2￱ and Bithumb to share customer data under the OECD framework The Ministry of Strategy and Finance confirmed that the administrative regulations surrounding the Crypto Asset Reporting Framework (CARF) will be delivered this ￰3￱ Organization for Economic Co-operation and Development (OECD) developed CARF to prevent offshore tax evasion and increase transparency in the decentralized finance ￰4￱ the OECD Global Forum in 2023, 48 countries signed an agreement, including the U.

S., the UK, Germany, and ￰5￱ OECD reporting system will allow tax authorities to identify and trace offshore activities without relying entirely on voluntary ￰6￱ are required to report overseas financial accounts exceeding 500 million ￰7￱ rule covers deposits, securities, and virtual ￰8￱ to an exclusive report, the total amount of declared overseas virtual assets in 2025 has reached 11.1 trillion won, an increase of 700 billion won from last year. However, CARF will cover all transactions regardless of the ￰9￱ Korean government confirmed that the information collected next year will be included in the first exchange cycle in ￰10￱ officials urged the government to treat CARF participation following international laws separately from domestic ￰11￱ taxation on digital assets in South Korea remains postponed until 2027, while other countries, such as Germany and the U.

S., are already imposing taxes on digital ￰12￱ OECD joint statement , written in November 2023, insisted that widespread adoption of CARF is required to prevent tax evasion and ensure consistent fairness in global tax ￰13￱ the signatories pledged their duty to move the framework into domestic ￰14￱ countries also agreed to activate the exchange agreements before the due date for data sharing in ￰15￱ Korea pushes for digital finance transformation under the OECD framework Hong Kong also joined the OECD’s framework last year, as reported on ￰16￱ country scheduled its first automatic exchange of crypto tax data for 2028 and will begin its legislative amendments in ￰17￱ has been practicing annual financial account information exchange with tax jurisdictions worldwide since 2018, including data on foreign bank accounts, which tax authorities use to uncover hidden ￰18￱ Chinese territory has already adjusted its crypto regulation frameworks with new anti-money laundering and licensing requirements for digital asset ￰19￱ Korea passed its tokenization law last month to legalize and adopt tokenized securities as part of its wider financial reform ￰20￱ reforms followed President Lee Jae-Myung’s election in June, who pushed the digital asset agenda with bipartisan consensus from the Token Securities ￰21￱ tokenization law updated the Electronic Securities Act and the Capital Market Act, which recognize blockchain as a valid system for record keeping and paved the way for the broad issuance of security tokens in the ￰22￱ push to join the OECD framework and the passing of the tokenized securities and stablecoin legislation reflect a strong bipartisan drive to transform Korea’s digital finance ￰23￱ Difference Wire helps crypto brands break through and dominate headlines fast