Government and OECD Joint Statement on Crypto Asset Information Exchange System... Efforts to Prevent Offshore Tax Evasion

The Ministry of Economy and Finance announced on the 10th that South Korea has participated in a joint statement to promote the implementation of the Crypto-Asset Automatic Exchange of Information Framework (CARF) along with 48 countries and jurisdictions, including France, Germany, Japan, the United Kingdom, and the United States.

CARF is a system for the automatic annual exchange of information related to crypto-asset transactions among member countries to prevent offshore tax evasion and enhance tax transparency in response to the rapid development of the crypto-asset market. It was approved by the OECD's Committee on Fiscal Affairs in August 2022.

This joint statement aims to maximize the spread of the implementation of the Crypto-Asset Automatic Exchange of Information Framework to ensure its effectiveness. It was made to carry out domestic legal revisions and the enforcement of agreements in line with the OECD's target schedule to start exchanges in 2027. It also urged other countries and jurisdictions to join in this implementation.

The government explained that by expressing South Korea's commitment and international cooperation efforts to prevent offshore tax evasion related to crypto-assets together with the Group of Seven (G7), it is expected to make a meaningful contribution to enhancing the spread of the implementation of the Crypto-Asset Automatic Exchange of Information Framework.

Going forward, in accordance with the OECD's goals and the schedule presented in this joint statement, the plan is to revise domestic laws necessary for the implementation of the framework and to promote the signing of agreements so that the exchange of crypto-asset transaction information can begin from 2027.

This content was produced with the assistance of AI translation services.