Main Points :
- South Korea officially adopts the OECD’s Crypto‑Asset Reporting Framework (CARF), implementing from 2026 and activating cross-border data exchange from 2027.
- Korean exchanges (Upbit, Bithumb) will share foreign investor transaction data with respective home jurisdictions, while overseas trading by Korean residents will be reported to Korea’s National Tax Service.
- The move aligns with global tax‐transparency trends—48 jurisdictions, including Korea, committed to CARF by 2027.
- This is a separate international compliance measure, and does not alter Korea’s domestic asset tax deferral structure (taxation on crypto income still deferred until 2027).
1. South Korea Commits to CARF: A Step Toward Global Crypto Tax Transparency
South Korea has declared its intention to join the OECD’s Crypto‑Asset Reporting Framework (CARF), a global standard designed for automatic exchange of crypto transaction data among tax authorities. The country will begin implementing CARF in 2026, with full international data sharing set to commence in 2027.
Under this framework, domestic exchanges such as Upbit and Bithumb will collect and report foreign investors’ transaction information to their home tax authorities. Conversely, the National Tax Service (NTS) of Korea will receive transaction data regarding Korean residents trading crypto on overseas platforms. The Ministry of Economy and Finance has confirmed that administrative regulations will be released imminently to guide domestic implementation.
2. CARF Explained: Global Standard for Crypto-Asset Reporting
The Crypto‑Asset Reporting Framework (CARF) was developed by the OECD under a G20 mandate to enhance transparency and curb tax evasion in crypto markets. Reporting entities, known as Crypto‑Asset Service Providers (CASPs), must collect user details—including tax residency and identification—and report transactions to domestic tax authorities, who then share this data across borders.
Reported transactions include:
- Exchanges between crypto and fiat.
- Crypto-to-crypto trades.
- Transfers of crypto‑assets, including payments for goods/services and transfers to unhosted wallets.
The framework is already slated for adoption within the EU, with member states required to apply it from January 2026, and the first reports expected in 2027.
3. Korea’s Motivation: Combating Offshore Tax Evasion and Fostering Market Integrity
Korea’s participation is part of a broader push for international tax transparency aligned with the global trend mirrored by 48 jurisdictions—including Japan, Australia, Singapore, and more—who have pledged to implement CARF by 2027. The announcement of Korea’s signature of CARF’s Multilateral Competent Authority Agreement (MCAA) dates to November 2024, where Korea formally joined other nations in this global commitment.
According to the Ministry of Economy and Finance, the goal is to establish a structured mechanism for information exchange, prevent crypto-fueled tax avoidance, and solidify confidence and fairness within the digital asset ecosystem.
4. Interaction with Domestic Tax Policy: Taxation Deferred Until 2027
While Korea adopts CARF internationally, its domestic taxation on crypto gains remains deferred until 2027, following agreement between the ruling and opposition parties. Government officials clarify that CARF-related reporting is separate from the domestic tax structure; the reporting obligation fulfills international obligations, not immediate taxation requirements.
5. What This Means for Crypto Investors and Blockchain Practitioners
For investors:
- Foreign individuals using Korean exchanges should expect their transaction history to be shared with their home tax agencies beginning 2027.
- Korean nationals trading on foreign platforms must be mindful that those transactions will be included in NTS reports.
For blockchain businesses:
- Increased demand for reporting infrastructure, identity verification, and compliance systems is expected.
- Global alignment under CARF could streamline cross-border operations for compliant service providers.
Conclusion: A Future of Transparent, Tax-Compliant Crypto Networks
South Korea’s entry into the OECD’s Crypto‑Asset Reporting Framework underscores a significant shift toward global tax transparency in the crypto space. By implementing CARF from 2026 and starting international exchanges in 2027, Korea aligns with a coordinated international push toward accountability and fair taxation. While domestic crypto tax collection is deferred until 2027, CARF marks a preparatory step toward robust regulatory compliance and signals evolving maturity in crypto governance.
