South Korea to Mandate Cross-Border Crypto Transaction Data Sharing Under OECD CARF by 2027
South Korea’s Ministry of Strategy and Finance has signed the OECD’s Crypto-Asset Reporting Framework (CARF), officially launched on September 2, 2025, to mandate global sharing of crypto transaction data. Starting in 2026, domestic exchanges such as Upbit and Bithumb must collect and report identifying and transactional data of foreign investors to their home tax authorities. Conversely, transaction records of Korean nationals on overseas platforms will be submitted to the National Tax Service. From 2027, CARF will operate fully, requiring virtual asset operators to exchange crypto transaction data across borders irrespective of transaction size, closing offshore reporting gaps. Aligned with 48 committed countries, this framework enhances tax transparency and combats evasion. In parallel, Seoul is advancing a stablecoin regulatory framework: Tether (USDT) and Circle (USDC) executives are engaging with local banks and the Bank of Korea to ensure access to local-currency stablecoins for trading and remittances.
Bearish
The implementation of the OECD’s CARF will impose new compliance requirements on exchanges like Upbit and Bithumb, leading to increased reporting overhead and potential short-term trading volume declines as investors adjust to data-sharing protocols. In the longer term, enhanced tax transparency could stabilize the market but is unlikely to offset the initial burdens on local platforms, making the overall impact bearish for crypto trading activity in South Korea.