South Korea adopts global crypto-asset reporting framework to boost transparency

The South Korean government announced that it will begin collecting detailed information on cryptocurrency transactions from local and foreign investors starting in 2026, with full implementation of the Crypto-Asset Reporting Framework scheduled for early 2027.

The initiative, aligned with international standards set by the Organization for Economic Co-operation and Development (OECD), will compel exchanges like Upbit and Bithumb to disclose transaction history and personal details of their users.

The Ministry of Economy and Finance confirmed it will issue an administrative notice later this month outlining regulations for the new reporting system.

“The purpose is to establish detailed regulations for implementing the Virtual Asset Information Exchange Agreement,” — the Ministry said in a statement carried by Yonhap News.

Under the Crypto-Asset Reporting Framework, data will be automatically shared with up to 74 participating countries, including the United Kingdom, Germany, and Japan. However, information exchanges will occur only when both nations agree to reciprocal sharing.

Tax enforcement and transparency goals

The decision comes as South Korea faces a growing challenge in monitoring cross-border crypto flows. National data shows foreign crypto transactions reached KRW 11.1 trillion ($790 million) in 2025, up KRW 700 billion ($503.3 million) from the previous year. Authorities argue that the Crypto-Asset Reporting Framework will strengthen oversight of these activities while improving global tax transparency.

“The framework is designed to close gaps in monitoring crypto assets across jurisdictions,” — Sung-ho Lee, Senior Researcher at the Korea Institute of Public Finance, told the Korea Economic Daily. “Without standardized reporting, detecting tax evasion or illicit flows becomes extremely difficult.”

The reporting system will operate alongside the country’s delayed 20% crypto tax bill, now set to take effect in 2027. Officials note that aligning both measures will maximize compliance and reduce loopholes in digital asset taxation.

OECD’s global initiative

The OECD developed the Crypto-Asset Reporting Framework in response to concerns about tax evasion and money laundering in fast-expanding digital markets. The framework obliges crypto asset service providers (CASPs) to collect information such as user tax residency, tax identification numbers, and transaction records. These reports must be submitted annually, with special attention to unusual or large transfers.

By harmonizing data standards across jurisdictions, the OECD aims to create a system akin to its Common Reporting Standard (CRS) for traditional banking.

“The Crypto-Asset Reporting Framework represents the next stage in global financial transparency,” — an OECD spokesperson said in a policy briefing. “Just as the CRS closed loopholes in offshore banking, this measure will address risks unique to digital assets.”

South Korea, a key member of the OECD, has already committed to enforcing the new guidelines. By mandating exchange compliance, regulators hope to prevent the country from becoming a hub for undisclosed crypto transactions.

Rising pressure from fraud and tax evasion cases

The urgency of adopting the Crypto-Asset Reporting Framework reflects South Korea’s recent struggles with crypto-related crime. Between 2021 and 2022, authorities seized approximately $180 million in cryptocurrencies from tax evaders. Regulators argue that without international cooperation, enforcement actions risk being undermined by offshore trading platforms.

Critics warn, however, that stricter reporting requirements could deter investment or push activity into unregulated channels.

“There’s always a trade-off between transparency and market competitiveness,” — Hye-jin Park, Professor of Economics at Seoul National University, said in an interview with the JoongAng Daily. “The challenge is ensuring compliance without driving capital away from South Korea’s exchanges.”

Despite concerns, the government maintains that the long-term benefits outweigh potential drawbacks. With both domestic tax enforcement and international data exchange set to expand, the Crypto-Asset Reporting Framework signals a major shift in how the country regulates digital assets.

What it means for policy makers

For policy makers, the Crypto-Asset Reporting Framework represents not just a compliance tool but a broader strategic alignment with global tax governance. By synchronizing crypto oversight with OECD partners, South Korea is positioning itself as a leader in international regulatory cooperation.

The framework also underscores the inevitability of deeper state involvement in digital finance. As crypto adoption grows, ensuring transparent reporting and curbing tax evasion are likely to become central issues for governments worldwide.

For now, South Korea’s rollout of the Crypto-Asset Reporting Framework offers a test case: whether international information sharing can keep pace with an industry designed for speed, anonymity, and cross-border movement.