The National Tax Service of Korea is planning to implement a new management system to monitor cryptocurrency transactions and combat illegal activities by 2025.
The South Korean tax authority is delving seriously into the world of cryptocurrencies. According to Digital Daily, a reputable local media outlet, the government is preparing to establish an “integrated virtual asset management system” capable of analyzing and supervising cryptocurrency transactions.
Selection of a Specialized Advisory Body
The decision to involve a third party in this project demonstrates the government’s commitment to this initiative. The task has been entrusted to GTIC, a specialized consulting firm, which will work closely with the tax authority to develop a system proposal within the next four months.
Addressing the Rise in Illicit Transactions
This initiative is driven by the increasing need to implement “regulatory” measures in response to a significant rise in illicit cryptocurrency transactions. Additionally, the growing volume of transactions requires adherence to a mandatory reporting system to establish effective control measures.
Favorable International Environment for Cryptocurrencies
It is worth noting that this project coincides with a significant surge in Bitcoin, which recently reached $70,000 for the first time in its history, reigniting interest in cryptocurrencies after the approval of Bitcoin exchange-traded funds (ETFs) in the United States in January.
It is evident that South Korea intends to regulate and oversee cryptocurrency transactions, while regulatory decisions and decision-making processes regarding Bitcoin ETFs remain complex due to differing interpretations within the regulatory community and concerns about Bitcoin classification under current financial laws.