South Korea Signs OECD Crypto Reporting Agreement, Eyes 2027 for Implementation

South Korea has signed the OECD agreement on crypto reporting among member nations. The country’s Ministry of Economy and Finance announced on November 27 that it had officially signed the Crypto Asset Reporting Framework Multilateral Competent Authority Agreement (CARF MCAA) at the 17th OECD Global Forum.

Signatories of the CARF MCAA will exchange information on crypto asset transactions through an automatic channel developed by the OECD in collaboration with the G20. As an OECD member, South Korea has fulfilled its role in the agreement and plans to amend its local crypto laws.

An official from South Korea’s Ministry of Economy and Finance stated that the country plans to review domestic laws, establish individual agreements, and begin exchanging crypto asset transaction data in 2027. This process will allow the government to obtain information about crypto asset transactions, increasing the transparency of tax sources related to crypto assets.

Jin Seong-jun, a prominent South Korean politician, highlighted the challenges of tracking crypto transactions on foreign exchanges under the current system. Seong-jun noted the potential difficulty in this process unless transaction owners report them voluntarily. He emphasized the importance of the OECD agreement, highlighting its potential for taxing such transactions.

KDA Calls for Tax Postponement

Following the Ministry of Economy and Finance’s signing of the OECD agreement, the Korea Digital Asset Service Provider Association (KDA) has called on the government to postpone implementing the crypto asset income tax until 2027. The KDA argues that the new agreement will enable proper tracking of transactions and help avoid complications that could arise from parallel regulatory protocols on the same issue.

Korea’s signing of the OECD agreement reflects the growing government involvement in crypto regulations globally. For example, the UK’s FCA recently announced plans to implement cryptocurrency regulation by 2026 due to increasing user demand.