TLDR
- South Korea will join the OECD’s Crypto-Asset Reporting Framework to increase tax transparency.
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South Korea’s exchanges like Upbit and Bithumb will share crypto transaction data with global tax authorities.
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The framework will help combat cross-border tax evasion and increase global regulatory coordination.
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South Korea plans to start reporting data in 2026, with full international data exchange set for 2027.
South Korea has announced that it will join the OECD’s Crypto-Asset Reporting Framework (CARF), which aims to enhance tax transparency in the digital asset sector. The country plans to begin implementing the framework in 2026, with full international data exchange set to begin in 2027. Under this agreement, South Korea’s cryptocurrency exchanges, such as Upbit and Bithumb, will be required to report data on foreign investors’ transactions.
The CARF initiative will allow tax authorities across 48 participating countries to access information on foreign investors’ cryptocurrency activities on South Korean exchanges. In return, South Korea will receive transaction data on its residents’ trading activities on foreign platforms. The framework is part of an international effort to combat tax evasion and illicit financial flows in the cryptocurrency market.
Data Sharing Will Begin in 2026, Full Exchange Set for 2027
According to reports, South Korea’s participation in the CARF framework will begin with data collection in 2026, with the first exchange of information scheduled for 2027. The framework mandates that cryptocurrency service providers, including exchanges and wallet providers, collect and report information such as users’ tax identification numbers, residency, and transaction histories.
This will provide tax authorities with a clearer view of cross-border crypto transactions and help reduce the risks of tax evasion.
The move aligns with South Korea’s efforts to regulate its growing cryptocurrency sector. The government has also begun licensing crypto exchanges, requiring them to verify the identities of users through real-name trading accounts. Additionally, South Korea is preparing to introduce capital gains taxes on cryptocurrency transactions by 2027, further solidifying its regulatory framework.
Upbit and Bithumb to Share Data Under New Framework
South Korea’s largest crypto exchanges, Upbit and Bithumb, will play a crucial role in the country’s participation in the CARF. These exchanges will be required to track and report detailed data on foreign investors’ crypto transactions, which will then be shared with tax authorities worldwide.
This move aims to increase the visibility of cross-border cryptocurrency activities and help tax authorities prevent tax evasion.
The new regulations will also apply to Korean residents trading on foreign exchanges. These transactions will be reported to the National Tax Service, enhancing the country’s ability to monitor and enforce tax compliance. While the CARF framework is expected to bring more oversight to the cryptocurrency industry, it could also lead to higher compliance costs for exchanges.
South Korea Commitment to Digital Finance and Global Standards
South Korea’s decision to join the OECD’s Crypto-Asset Reporting Framework is part of a broader strategy to position the country as a leader in digital finance.
The framework provides South Korea with an opportunity to align its domestic regulations with global standards, making the country a more attractive destination for institutional investment in cryptocurrency.
In addition to CARF, South Korea recently passed a tokenization law to legalize tokenized securities and stablecoins. These legislative moves indicate the country’s commitment to fostering a regulatory environment that balances innovation with transparency. South Korea’s proactive approach to crypto regulation and reporting as a result is part of a larger global trend toward tightening oversight in the digital asset sector.
