Korea National Tax Service Plans to Introduce Blockchain Tracking Program to Plug Tax Loopholes on Crypto Assets in Personal Wallets

TechFlow reports that on August 31, according to Digital Asset, South Korea's National Tax Service announced it will introduce commercial blockchain tracking software used by domestic and international law enforcement agencies (prosecutors, police, IRS, etc.) to track and analyze transfers between digital asset wallets, preventing tax loopholes arising from personal wallets. Meanwhile, regarding tax regulation of overseas exchanges, South Korea will address this through the Crypto-Asset Reporting Framework (CARF)—the CARF taking effect in 2028 will cover 2027 transaction data, aligning with the domestic digital asset income tax collection starting in 2027 and the May 2028 filing period, thereby achieving effective tax coverage for overseas holdings.