South Korea has taken a significant step in the world of cryptocurrency by signing the OECD agreement on crypto reporting among member nations. The Ministry of Economy and Finance made the official announcement on November 27 that they had signed the Crypto Asset Reporting Framework Multilateral Competent Authority Agreement (CARF MCAA) at the 17th OECD Global Forum.
The CARF MCAA will facilitate the exchange of information on crypto asset transactions among signatories through an automatic channel developed by the OECD in collaboration with the G20. As a member of the OECD, South Korea has fulfilled its obligations under the agreement and is now looking to amend its local crypto laws.
An official from the Ministry of Economy and Finance revealed that South Korea is planning to review its domestic laws, establish individual agreements, and start exchanging crypto asset transaction data by 2027. This process will enable the government to access information about crypto asset transactions, ultimately enhancing the transparency of tax sources related to crypto assets.
Prominent South Korean politician Jin Seong-jun raised concerns about the challenges of tracking crypto transactions on foreign exchanges under the current system. Seong-jun emphasized the significance of the OECD agreement in taxing such transactions and highlighted the potential difficulties in tracking transactions unless owners report them voluntarily.
In response to the signing of the OECD agreement, the Korea Digital Asset Service Provider Association (KDA) has urged the government to delay the implementation of the crypto asset income tax until 2027. The KDA believes that the new agreement will streamline transaction tracking and prevent complications that could arise from conflicting regulatory protocols.
South Korea’s decision to sign the OECD agreement reflects the increasing government involvement in global cryptocurrency regulations. Countries like the UK, where the FCA recently announced plans to implement cryptocurrency regulation by 2026 in response to rising user demand, are also taking steps towards regulating the crypto market.
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