The South Korean government has officially joined the Crypto-Asset Reporting Framework (CARF), an initiative by the Organization for Economic Cooperation and Development (OECD). This new framework will enable the automatic exchange of crypto transaction information with tax authorities worldwide.
Starting in 2027, South Korea will begin sharing the transaction records of foreign crypto users on its local exchanges, such as Upbit and Bithumb, with their respective countries. In return, South Korea will receive transaction data from its own citizens who use overseas exchanges.
According to a local report, the Ministry of Economy and Finance has officially signed the agreement and is preparing to issue a detailed administrative notice this month to implement the regulations. The primary goal of this initiative is to prevent offshore tax evasion and increase financial transparency.
While the system for sharing information goes into effect in 2027, the collection of transaction records will begin next year. This move may lead to short-term challenges for domestic exchanges, as privacy-conscious users may move to other platforms, potentially causing a dip in trading volume.
September 2025, Cryptoniteuae