In a landmark move for international financial oversight, South Korea and Thailand have announced a groundbreaking bilateral agreement to share virtual asset transaction data starting in 2028. This unprecedented collaboration directly targets sophisticated tax evasion schemes that exploit the borderless nature of cryptocurrency markets, representing one of the most significant bilateral regulatory efforts between major Asian economies.
The agreement expands the nations' existing information-sharing framework, which initially covered traditional hidden overseas bank accounts, to explicitly include data from virtual asset transactions. This is crucial as cryptocurrency exchanges and wallets often operate outside conventional banking channels, making digital flows historically difficult for tax authorities to track. The pact establishes a formal cooperative framework for collecting taxes on hidden overseas assets belonging to delinquent taxpayers, moving beyond ad-hoc requests to a structured, predictable system of exchange.
The 2028 start date provides a substantial implementation window, allowing exchanges, wallet providers, and tax authorities in both countries to develop necessary technical infrastructure and legal protocols. The agreement likely mandates that Virtual Asset Service Providers (VASPs) collect and report specific customer data, including wallet addresses linked to verified identities, transaction volumes and values, timestamps, and counterparty information under Travel Rule compliance.
This bilateral effort aligns with powerful global trends, including the OECD's Crypto-Asset Reporting Framework (CARF) and the EU's Markets in Crypto-Assets (MiCA) regulation. Both South Korea, with its high retail crypto adoption and comprehensive 2023 taxation regime, and Thailand, which seeks to position Bangkok as a regional blockchain center, have robust domestic reasons for this collaboration to protect their tax bases while fostering legitimate industry growth.
Simultaneously, South Korea's Financial Services Commission (FSC) is convening its influential Virtual Asset Committee on March 4, 2025, to finalize the nation's first comprehensive 'Basic Act on Digital Assets.' This crucial meeting aims to incorporate critical feedback from private sector advisors on two transformative proposals: imposing strict 15-20% ownership caps on major shareholder stakes in cryptocurrency exchanges, and establishing a bank-led stablecoin issuance framework requiring banking institutions to hold a majority stake of 50% plus one share in any issuing entity.
The ownership cap directly addresses concerns over market concentration and potential conflicts of interest, aiming to foster greater corporate governance and reduce systemic risk. The bank-centric stablecoin model prioritizes financial stability by leveraging existing banking oversight and deposit insurance schemes, contrasting with models where non-bank fintech companies lead stablecoin projects.
Following the committee meeting, the FSC will refine the legislative proposal before submitting it to the National Assembly. The comprehensive basic act also aims to cover consumer protection mandates, market integrity measures, AML/CFT compliance, and token classification frameworks. These parallel developments—the international tax agreement and domestic legislative advancement—position South Korea as a thoughtful regulator in the rapidly evolving global cryptocurrency landscape.
