South Korea Agrees to Start Sharing Cryptocurrency Data with 48 Countries

The South Korean government has announced plans to begin collecting and sharing information on crypto investors, both local and foreign, who trade through local exchanges such as Bithumb and Upbit. Data collection is scheduled to start next year, while the full system is set to officially launch in 2027.

Under the plan, the transaction records of South Korean investors will also be provided to the national tax office. This means exchanges must submit both trading activity and personal details of their users to tax authorities starting in 2026.

The new rules are part of the Crypto-Asset Reporting Framework (CARF), which was introduced by the Organization for Economic Co-operation and Development (OECD). Countries that are members of the OECD are expected to automatically share cryptocurrency exchange data with anywhere from 48 to 74 nations, including Japan, Germany, the United Kingdom, and others.

However, information will only be shared with a partner country if that nation agrees to exchange its own data with South Korea in return.

The nation’s finance and economy ministry is expected to release an administrative notice later this month that will explain the regulations in detail to investors and exchanges.

Statistics from government agencies show that foreign-related cryptocurrency transactions in South Korea reached approximately $790 million this year. That figure represents an increase of $503 million compared with 2024.

The start of the international reporting framework in 2027 will also align with South Korea’s crypto tax law. Regulators had originally planned to enforce a 20 percent tax on local digital asset gains earlier, but the introduction was postponed by two years.

The OECD designed the CARF to improve transparency in the global crypto market and reduce tax evasion across borders. Under the framework, crypto asset service providers (CASPs) are required to gather user details such as tax residency information and identification numbers. Exchanges are mandated to also submit yearly reports highlighting major or unusual crypto transactions.

The OECD hopes this will strengthen its ability to detect fraud, money laundering, and tax avoidance schemes connected to digital currencies.

South Korea has been grappling with crypto-related tax evasion for years. Between 2021 and 2022, authorities seized approximately $180 million worth of digital assets from individuals who failed to pay their taxes. Officials expect the new data-sharing system to help close those gaps and improve oversight of the fast-growing market.

Major players in the crypto industry, such as Cantor Equity Partners Inc. (NASDAQ: CEP), will be watching to see whether similar regulations are passed in jurisdictions like the U.S. and how such rules could impact their trajectory.

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