The South Korean government has created new tools designed to track how cryptocurrency is being used in real estate transactions.
Crypto Times reports the National Tax Service (NTS) will roll out the Integrated Virtual Asset Analysis System that will enable authorities to track the source of funds used in real estate purchases and property transfers, and pinpoint transactions where profits from virtual assets are used in acquisitions.
Under current law, authorities can impose taxes if the source of funds for a property purchase cannot be verified. The NTS stated the lack of crypto-related data in existing systems has hampered their ability to trace questionable transactions.
“There are instances where explanatory materials regarding the source of funds are submitted when acquiring real estate,” said an NTS official. “We plan to organize the necessary information to verify cases where virtual assets are included.”
The system will also integrate overseas real estate records, integrated annual taxpayer data, and virtual asset reporting from foreign financial accounts to strengthen cross-border monitoring. South Korea will begin to access virtual asset transaction data from 56 countries in 2027 under the OECD’s Crypto-Asset Reporting Framework (CARF), with overseas real estate information sharing scheduled to begin in 2030.
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