South Korea to Develop Crypto Asset Management System by 2025
South Korea is planning to establish a dedicated asset management system for cryptocurrencies by 2025 as a measure to combat tax evasion, according to reports from local media outlets. The National Tax Service of the country has chosen GTIC as the lead firm to develop this system, as part of an initial consultation.
The Purpose of the System
- The crypto-focused asset management system aims to facilitate the analysis and management of information collected from cryptocurrency trading platforms.
- These platforms are required to report users’ transaction details under the country’s crypto gains tax regulations.
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Crypto Gains Tax Schedule
The implementation of South Korea’s crypto gains tax has been postponed from its original date of January 1, 2023, and is now scheduled to take effect in January 2025.
South Korea’s Stance on Cryptocurrency
South Korea has been active in regulating the cryptocurrency industry within its borders:
Ban on Cryptocurrency ETFs
In January, the country’s financial regulator reiterated its ban on financial institutions launching cryptocurrency exchange-traded funds (ETFs).
- Local investors are prohibited from investing in spot crypto ETFs.
- However, foreign investors can still access crypto futures products.
The National Tax Service has not yet responded to requests for further comment regarding the development of the crypto asset management system.
Hot Take: South Korea Takes Steps Towards Crypto Regulation
South Korea’s plan to establish a dedicated asset management system for cryptocurrencies reflects the country’s commitment to combating tax evasion and regulating the growing crypto industry. By implementing this system, the government aims to ensure transparency and accountability in crypto transactions. However, the postponement of the crypto gains tax indicates that South Korea is taking a cautious approach to implementing regulations. It remains to be seen how this asset management system will affect the overall crypto ecosystem in the country.
