South Korea plans to build a crypto-focused asset management system by 2025 to prevent tax evasion, local media reported.
The country’s National Tax Service has selected GTIC as the lead firm to build the system as part of a preliminary consultation, local news outlet Digital Daily reported on Monday.
The system is expected to facilitate the analysis and management of the information collected from crypto trading platforms that are required to file users’ crypto transaction details, according to the report.
The country’s crypto gains tax is scheduled to go into effect in January 2025, after being pushed back from the original schedule of January 1, 2023.
In January, South Korea’s financial regulator reiterated its ban restricting financial institutions from launching any kind of cryptocurrency exchange-traded funds (ETFs). Local investors are restricted from investing in spot crypto ETFs, while foreign crypto futures products remain available.
The National Tax Service did not immediately respond to The Block’s request for further comment.
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