🌎 South Korea Plans New Crypto Transaction Monitoring System by 2025

South Korea’s National Tax Service is taking steps to develop a new management system to monitor crypto transactions and combat illegal activities. The goal is to have this system in place by 2025.

The National Tax Service has begun initial discussions with a consulting firm to create a “virtual asset integrated management system.” This system will analyze and manage data from crypto transactions in compliance with mandatory reporting regulations. The consulting firm, GTIC, will work on the development of the system for about four months. The plan is to issue proposals for system construction based on the consultation results and have the system operational by 2025.

This initiative is a response to the increasing need for regulatory measures to address the growing volume of illicit transactions in the crypto space. The system aims to enhance monitoring and enforcement efforts to combat activities like money laundering.

Recent developments in the crypto market, including Bitcoin’s surge to $70,000 and the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S., have sparked renewed interest in cryptocurrencies. This has led to increased investment in the sector and highlighted the importance of taxation and monitoring to prevent illegal transactions.

Earlier discussions within South Korea’s regulatory bodies, such as the Financial Supervisory Service, have focused on the approval of spot Bitcoin ETFs. While there is optimism surrounding the crypto market, decision-making processes are complex due to differing views within the regulatory community and concerns about Bitcoin’s classification under current financial laws.