Korean tax service mulling new platform to monitor all crypto transactions

Korea’s National Tax Service wants to develop a new management system to monitor crypto transactions and combat illegal activities, targeting completion by 2025.

South Korea‘s National Tax Service has initiated preliminary consultations with a consulting firm to develop a new “virtual asset integrated management system” that will be analyzing and managing crypto transactions’ data under mandatory reporting regulations, South Korea’s news media Digital Daily has learned without revealing where it got the information.

The chosen firm, GTIC, is tasked with consulting on the system’s development for about four months, with plans to issue proposals for system construction based on consultation results and open the system by 2025. This initiative plans to address the growing need for regulatory measures in response to the rising volume of illicit transactions in crypto, the report notes.

Additionally, the move coincides with Bitcoin‘s recent quick surge to $70,000 for the first time in its history, reigniting interest in crypto, particularly after the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. earlier in January, prompting increased investment and the need for taxation and monitoring of illegal transactions such as money laundering.

Earlier in March, crypto.news reported about discussions within South Korea’s regulatory bodies, including the Financial Supervisory Service, regarding the approval of spot Bitcoin ETFs. While there is optimism regarding crypto, decision-making processes appear to be complex due to differing views within the regulatory community and concerns about Bitcoin’s classification under current financial laws.