South Korea's National Tax Service plans to introduce commercial tracking software used by domestic and foreign investigative agencies to monitor and analyze fund flows between digital asset wallets. The move is aimed at closing tax loopholes tied to virtual assets held in personal wallets.
The government said digital assets held in personal wallets and on overseas exchanges remain subject to taxation when income is generated through transfers or lending. For overseas exchanges, authorities said they will respond through the Crypto-Asset Reporting Framework (CARF).
South Korea Tax Agency to Deploy Wallet Tracking Tools for Crypto Tax Enforcement
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