South Korea Aims to Tackle Tax Evasion with Crypto Asset Management System

1. South Korea aims to counter tax evasion with a dedicated crypto asset management system by 2025.
2. GTIC chosen by the National Tax Service to lead the construction of the system, focusing on efficient analysis of data from crypto trading platforms.
3. Initiative aligns with South Korea’s proactive regulatory approach, anticipating the implementation of the crypto gains tax in January 2025.

South Korea plans to establish a dedicated crypto-focused asset management system by 2025. This is a strategic move to combat tax evasion, according to local reports. This initiative comes as part of the country’s efforts to enhance regulatory oversight in the burgeoning cryptocurrency space.

GTIC Chosen as Lead Firm for Asset Management System

The National Tax Service of South Korea has designated GTIC as the lead firm responsible for constructing the crypto-focused asset management system.

This decision follows a preliminary consultation as reported by Digital Daily on Monday. Further, the system aims to streamline the analysis and management of data gathered from cryptocurrency trading platforms, obligating them to report users’ transaction details.

Tax Evasion Prevention Ahead of Crypto Gains Tax Implementation

The upcoming crypto-focused asset management system is positioned to play a pivotal role in preventing tax evasion.

Especially as South Korea prepares for the implementation of its crypto gains tax in January 2025. The enforcement of the tax, originally scheduled for January 1, 2023, was delayed to allow for comprehensive preparations and regulatory infrastructure.

In fact, South Korea has been actively shaping its regulatory stance on cryptocurrencies. In January, the country’s financial regulator reinforced a ban preventing financial institutions from launching cryptocurrency exchange-traded funds (ETFs).

Enhancing Oversight and Compliance

South Korea establishes a crypto asset management system to promote transparency and compliance in its cryptocurrency ecosystem.

As the industry continues to evolve, robust regulatory measures become imperative. South Korea’s proactive approach reflects its dedication to preventing illicit activities, particularly in the realm of tax evasion.

SO, the National Tax Service’s selection of GTIC marks a significant step toward achieving these objectives, ensuring enhanced oversight in the crypto space.