South Korea Adopts OECD Crypto Reporting, Tightens Oversight on Global Traders

Highlights:

• South Korea has moved to tighten crypto oversight with compulsory transaction reporting.
• The information-sharing initiative will affect foreign and local investors.
• The preliminary phase of information sharing will roll out in 2026.

South Korea’s Ministry of Economy and Finance has announced plans to introduce new rules mandating the reporting of cryptocurrency transaction information to relevant tax authorities. According to a South Korean local media, the proposed rule targets foreign crypto investors using South Korean trading platforms and Korean nationals trading on offshore exchanges. Under the new rules, the ministry will share foreign investors’ crypto transactions with other countries. On the other hand, Korean investors’ information will be shared with the Korean National Tax Service.

SOUTH KOREA PLANS TO ADOPT THE OECD'S NEW TAX REPORTING FRAMEWORK FOR #CRYPTO. 📢

AS PER THE FRAMEWORK, ALL CRYPTO TRADES WILL BE REPORTED TO AUTHORITIES. pic.twitter.com/ScG2lBjOqT

— The Moon Show (@TheMoonShow) September 2, 2025

South Korea Adopts OECD Framework to Aid Information Sharing

South Korean authorities will announce the implementation regulations for the Crypto-Asset Reporting Framework (CARF) this month. For context, CARF is a system designed by the Organisation for Economic Co-operation and Development (OECD), allowing the exchange of crypto transaction information among 48 countries, including Germany, Japan, and the United Kingdom. This helps to boost transparency and prevent tax evasion.

The South Korean government signed the Multilateral Competent Authority Agreement (MCAA) for CARF at the OECD Global Forum in November last year. This allows the nation’s local exchanges, including Upbit and Bithumb, to share foreign investors’ crypto trading information with local tax authorities.

The initial phase of information sharing will begin next year. Meanwhile, starting from 2027, global local tax authorities, including the South Korean National Tax Service, will share the information gathered from 2026 through the OECD system. This enables participating countries that have adopted the system to monitor their citizens’ transactions and crack down on tax evasion.

Implications of the New Rules on South Korea’s Current Taxation Laws

Previously, South Korea’s National Tax Service mandated that every Korean national holding more than 500 million won in stocks, deposits, or virtual assets must report holdings monthly. The National Tax Service reported approximately 11.1 trillion won in declared virtual assets for 2024. The reported figure represented a 700 billion won increase from 2023.

Meanwhile, with CARF involvement, Korean tax authorities scrutinise every transaction regardless of the value. Describing this development, a government official noted that an overseas financial account reporting system appears more substantial.

An official from South Korea’s Ministry of Economy and Finance stated:

“The intention is to prepare detailed regulations for the implementation of the virtual asset information exchange agreement.”

Unlike the United States and Germany, the South Korean government has delayed domestic virtual assets investment income taxation until 2027. According to officials, the delay aligns with international agreements and is distinct from the nation’s taxation policies.

South Korea will join the OECD’s Crypto-Asset Reporting Framework (CARF), sharing foreign investors’ transactions on local exchanges like Upbit and Bithumb with other countries, while Korean residents’ overseas crypto trades will be reported to the National Tax Service. The…

— Wu Blockchain (@WuBlockchain) September 2, 2025

South Korean Authorities’ Crypto Regulatory Efforts

On September 1, Crypto2Community reported that South Korea’s nominee for the nation’s Financial Services Commission (FSC) chairman, Lee Eok-won, was against using crypto as money. According to the publication, Lee warned that crypto volatility prevents it from serving as a store of value.

Additionally, he described cryptocurrencies as lacking intrinsic value, differentiating them from traditional financial instruments, including equities and deposits. The FSC chairman nominee also spoke on exchange-traded funds (ETFs). According to him, ETFs possess both risks and opportunities, which the FSC will study to understand how best to embrace them.

While Lee sounded sceptical about cryptocurrencies and ETFs, he took a supportive stance toward stablecoins. He noted that he would create opportunities for growth in the stablecoin sector. Lee’s statement aligns with South Korea’s government’s efforts to develop a stablecoin pegged to the Korean won.