Government Refutes Claim That 86% of Cryptocurrency Transactions Are Tax-Free

The government has stated that the claim that 86% of cryptocurrency transactions are in a tax-free zone is not true. On the 3rd, the Ministry of Economy and Finance refuted reports citing a Chainalysis report, emphasizing that the assertion that 86% are in a tax-free zone is false. Chainalysis argued that there are limitations in identifying information from personal wallets and decentralized exchanges (DEX), but the ministry explained that this figure does not represent the government's tax information capture rate. Furthermore, it added that this figure only calculates activities subject to CARF (Cross-border Digital Asset Information Exchange) among the 'global on-chain potential taxable activities' excluding internal transactions of centralized exchanges. Chainalysis claimed that the potential taxable on-chain activities in South Korea will reach a total of $10.9 billion by 2025, and that only about 14% of these activities can be captured through CARF. The Ministry of Economy and Finance emphasized that not being subject to CARF does not mean that the government cannot track transactions, and stated that it is reviewing detailed enforcement standards and tax infrastructure to ensure the smooth implementation of digital asset income taxation.

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