The Ministry of Economics and Finance of South Korea promised to soon publish details on the implementation of the reporting system of cryptocurrency assets (CARF). This is an international tax standard developed by the Organization for Economic Cooperation and Development (OECD).
Having introduced Carf, South Korea will be able to exchange data on transactions performed by foreign investors on local crypto -streaks with other countries, including Upbit and BitHumb. And information about foreign transactions made by South Korean traders will be transferred to the National Tax Service of South Korea, Wublockchain wrote.
The Carf system is adopted in 48 countries. It is intended to combat tax evasion in offshore zones. South Korea signed an agreement on the implementation of CARF in November last year at the Global Forum of OECD.
Since 2026, Korean exchanges will be obliged to provide local tax authorities with personal data and data on transactions of foreign users. The first data exchange within the CARF should formally begin in 2027 and will include transactions from 2026.
In August, the Financial Services Commission (FSC) ordered that all local exchanges immediately suspend lending services in cryptocurrencies, due to potential risks for investors and market stability. The ban will be valid until the authorities complete the development of a comprehensive legal framework for cryptocreditation.
Source: Bits
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