South Korea’s National Tax Service is looking to create a new management system to oversee cryptocurrency transactions and combat illegal activities by 2025.
The National Tax Service of South Korea has started initial discussions with a consulting firm to develop a new “virtual asset integrated management system” that will analyze and control data related to cryptocurrency transactions under mandatory reporting rules. This information was revealed by South Korea’s news outlet, Digital Daily, without disclosing the source.
The consulting firm chosen for this project, GTIC, has been given a four-month consultation period to advise on the system’s development. After this period, proposals for system construction will be presented based on the consultation results, and the system is expected to be operational by 2025. This initiative aims to meet the increasing demand for regulatory measures due to the surge in illicit cryptocurrency transactions, as highlighted in the report.
This development comes at a time when Bitcoin recently reached an all-time high of $70,000, sparking renewed interest in cryptocurrencies. The approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. earlier in January has further fueled investment in cryptocurrencies, leading to a greater need for monitoring and taxation of illegal transactions like money laundering.
In March, crypto.news reported on discussions within South Korea’s regulatory bodies, including the Financial Supervisory Service, regarding the approval of spot Bitcoin ETFs. Despite optimism surrounding cryptocurrencies, decision-making processes are complex due to differing opinions within the regulatory community and concerns about how Bitcoin fits within current financial laws.
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