Crypto Regulation in South Korea: New Rules Put Upbit and Bithumb in Focus

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Crypto regulations in South Korea 2025 are getting intense as they are tightening oversight of the crypto market. As per local reports , the country has officially committed to the OECD’s Crypto-Asset Reporting Framework (CARF), which will require detailed reporting of crypto transactions and the exchange of this data across borders.

South Korea Crypto Regulation and Impact on Exchanges and Traders

Starting in 2026, Korean exchanges like Upbit and Bithumb will have to collect transaction details from foreign investors using their platforms. This data will then be shared with the investors’ home countries. The first phase begins next year, when exchanges start logging this data. By 2027, the system will expand into full-scale information sharing between South Korea and 48 other nations, creating one of the most comprehensive global data exchanges for crypto.

For Korean residents trading overseas, things are changing too. Until now, only those holding more than KRW 500 million in foreign accounts were required to report. Under CARF, all trades by Korean nationals on international platforms will be reported to the National Tax Service, no matter the size.

Global Transparency and the Future of Crypto Taxation in Korea

Officials stressed that the initiative is about transparency, not immediate taxation. South Korea has already delayed domestic taxation on crypto gains until 2027, even as countries like Germany and the U.S. already apply taxes. The Ministry of Finance noted that CARF is meant to standardize reporting, helping tax authorities worldwide monitor offshore activity more effectively.

Meanwhile, it is also highlighted that South Korea signed onto the framework at the OECD Global Forum last November. The system essentially creates a yearly data exchange between member countries, ensuring no investor can hide crypto assets offshore without detection.

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The National Tax Service revealed that Korean investors declared KRW 11.1 trillion worth of overseas crypto assets this year, up KRW 700 billion from last year. This growth has raised concerns about unreported trading abroad, making CARF’s arrival timely.

By feeding all this information into a global reporting system, the government hopes to tighten oversight while discouraging attempts to dodge taxes through overseas accounts.

Crypto Implications

For crypto traders, this means more eyes on every move. Whether trading at home or abroad, transparency will soon be unavoidable. While taxation in Korea is still a couple of years away, the groundwork is being laid. By the time 2027 arrives, Korean investors should expect not only strict reporting rules but also eventual tax obligations aligned with global standards.

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FAQs

Is cryptocurrency legal in South Korea?

Yes, crypto exchanges are legal and regulated in South Korea, though cryptocurrencies themselves are not classified as legal tender.

How much tax is on crypto gains in South Korea?

A 20% capital gains tax on crypto profits has been delayed to 2027 in South Korea; currently, there’s no crypto tax.

Which government body regulates crypto in South Korea?

The Financial Services Commission (FSC) and its Financial Intelligence Unit (FIU) are the primary government bodies regulating crypto in South Korea.