South Korea has announced the development of a state-of-the-art tracking system aimed at ensuring virtual asset users, particularly Bitcoin investors, comply with tax obligations. The National Tax Service has commissioned GTIC to create a sophisticated management system capable of dissecting and monitoring digital currency transactions. This initiative, spurred by the soaring investment in virtual assets and the recent record-breaking surge of Bitcoin to $70,000, is designed to clamp down on tax evasion and illegal financial activities, such as money laundering. Set to be operational by 2025, the system will analyze data from mandatory virtual asset transaction reports, enhancing transparency and fairness in taxation. Additionally, the country is tightening regulations on cryptocurrency services, requiring them to improve anti-money laundering (AML) and know-your-customer (KYC) protocols. This proactive approach not only aims to secure the financial ecosystem but also paves the way for potential approval of Spot Bitcoin ETFs, signifying South Korea’s commitment to leading in digital asset management and security.

Digital Daily Reported