South Korea’s National Tax Service plans to adopt a commercial tracing program already used by domestic and overseas investigative agencies to track and analyze fund flows between digital asset wallets. The move is aimed at closing a tax enforcement gap tied to personal wallets. The South Korean government said digital assets held in personal wallets and on overseas exchanges are subject to taxation when income is generated through transfers or lending. For overseas exchanges, authorities plan to respond through the Crypto-Asset Reporting Framework, or CARF, an automatic information exchange framework for crypto assets.
South Korea’s National Tax Service plans to introduce a commercial tracing program used by domestic and overseas investigative agencies to track and analyze fund flows between digital asset wallets, according to Odaily.
The stated goal is to close a tax loophole tied to virtual assets held in personal wallets. The South Korean government said digital assets held in personal wallets and on overseas exchanges fall within the tax net if income is generated through transfers or lending. For overseas exchanges, authorities plan to respond through the Crypto-Asset Reporting Framework, or CARF.
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