South Korea’s National Tax Service plans to adopt a commercial tracking program already used by domestic and overseas investigative agencies, according to Digitalasset. The tool is intended to trace and analyze fund flows between digital asset wallets as authorities move to close what the report described as a tax gap involving assets held in personal wallets.
The South Korean government said income generated from the transfer or lending of digital assets held in personal wallets and on overseas exchanges falls within the scope of taxation. On the overseas exchange side, the response will be handled through the Crypto-Asset Reporting Framework, or CARF. The report points to a broader effort by tax authorities to improve visibility into cross-wallet and cross-platform crypto activity using existing commercial surveillance tools rather than a new in-house system.
South Korea’s National Tax Service plans to introduce a commercial tracking program already used by domestic and foreign investigative agencies to trace and analyze fund flows between digital asset wallets, according to Digitalasset.
The reported aim is to close a tax gap tied to virtual assets held in personal wallets. The South Korean government said income arising from the transfer or lending of digital assets held in personal wallets and on overseas exchanges is subject to taxation. For overseas exchanges, compliance will be addressed through the Crypto-Asset Reporting Framework, or CARF.
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