Skip to content
- NTS builds systems to trace crypto use in property deals, targeting tax gaps.
- South Korea to receive crypto data from 56 countries in 2027 under OECD CARF.
- Training expands to track DeFi flows and mixing services before 2027 tax rollout.
South Korea’s National Tax Service (NTS) is expanding oversight of crypto use in real estate transactions. The agency is building tools to trace fund sources and flows, aiming to reduce tax gaps tied to undeclared income and asset transfers.
According to a report, the agency is finalizing an Integrated Virtual Asset Analysis System. The system includes tools to review the source of funds used in property purchases. It will focus on how crypto assets are used during transactions.
Officials plan to verify the origin of funds used in acquisitions. The system will also track fund flows linked to property transfers. It will identify cases where profits from crypto are used in purchases.
Crypto Reporting Framework Strengthens Monitoring
The platform will integrate several data sources. These include overseas real estate records and annual taxpayer data. It will also include virtual asset reporting from foreign financial accounts.
South Korea will begin receiving crypto transaction data from 56 countries in 2027. This will follow the OECD Crypto-Asset Reporting Framework. Overseas real estate information sharing is set to start in 2030.
Current law allows tax action if funding sources cannot be verified. Authorities can apply rules under the Inheritance and Gift Tax Act. This applies when income records do not support the purchase.
The NTS has long reviewed funding sources in property deals. However, crypto-related data has been limited in existing systems. This has reduced the ability to trace transactions.
An NTS official indicated that authorities are provided with explanations on the sources of funding. The official noted plans to organize data to verify cases involving crypto. Reviews will be enhanced in case no obvious source of income emerges.
Also Read: Western Union Targets May Launch for USDPT Stablecoin on Solana Network
However, the official said that income levels will be measured. This will establish whether trading activity was supported by adequate earnings. The idea of the process is to enhance the consistency of reviews.
Crypto Enforcement Training Ahead of 2027 Tax Rollout
The NTS is also developing internal capacity in addition to the development of the system. It has presented a cryptocurrency tracking training program. The plan was made available under the Public Procurement Service system.
Training will also concentrate on tracking money on decentralized finance platforms. It will discuss the activity of mixing services. These capabilities apply in tracing complicated fund transfers.
The actions are in advance of scheduled crypto taxation in January 2027. Its implementation is still a subject of political discussion. The People Power Party suggested the elimination of the tax in March 2026.
The suggestions mentioned the issues of equity and implementation. Extensive tax standards have yet to be developed. These are staking rules, airdrops, lending, hard forks, and NFTs.
South Korea, in a similar action, introduced blockchain deposit tokens. These are to be spent by government. The system facilitates programmable payments and enhances transparency.
Also Read: South Korea Tests Blockchain Tokens to Overhaul Government Spending System
