South Korea is taking decisive steps to address tax evasion associated with virtual assets by appointing GTIC for the integrated management system (ISP) of virtual assets through the National Tax Service.

In line with global efforts, such as the SEC's regulation of virtual assets in the United States, and recent developments in the cryptocurrency space, such as Bitcoin reaching a new all-time high of $70,000, investor interest in the cryptocurrency market is on the rise. This presents an opportune moment for South Korea to initiate cryptocurrency regulation to ensure widespread access to the benefits of crypto investing.

Similar to the SEC's endorsement of regulatory initiatives to protect investors and prevent money laundering, South Korea's National Tax Service is establishing a comprehensive virtual asset management framework. The primary goal is to analyze and manage transaction data effectively, ensuring compliance with standards and preventing tax evasion.

Given the ban by South Korean financial institutions on exchange-traded funds (ETFs) utilizing cryptocurrencies, this proactive measure was crucial due to concerns about illicit financial transactions involving South Korean citizens, notably on platforms like Winnerz.

The objective of the integrated management system for virtual assets is to address growing concerns about fraudulent activities, such as offshore money laundering and tax evasion, associated with the anonymity of virtual assets. This underscores the importance of global investors exercising caution in their tax-related decisions regarding virtual assets, with various crypto tax apps and tools available to assist them.

South Korea's current president, Yoon Suk Yeol, emphasized the need to establish a legal framework for classifying virtual assets before implementing taxes on cryptocurrency assets in the country's system. Therefore, the South Korean government has postponed plans to impose a 20% tax on all bitcoin earnings until 2025. It is expected that new regulations will be in place by 2025 to ensure transparency and safety for both investors and the government.