South Korea Aims To Launch Virtual Asset Tracking System to Ensure Tax Transparency

South Korea is set to implement a virtual asset tracking system in order to promote tax transparency and prevent tax evasion. The National Tax Service has selected a consulting firm, GTIC, to develop a sophisticated system capable of analyzing and managing transaction data related to digital currencies. This move comes in light of the increased investment in virtual assets, such as Bitcoin, following the approval of Bitcoin Spot ETF trading in the US. Governments worldwide are now focusing on regulating taxation for crypto transactions and combating illegal activities like money laundering. South Korea’s tracking service is expected to be released by 2025 after completing the consulting phase. Additionally, the country has already implemented regulations that require crypto service providers to strengthen their anti-money laundering and know your customer (KYC) systems, register with financial authorities, and enforce more rigorous AML/KYC procedures. South Korea is also deliberating whether to approve Spot Bitcoin ETFs.