CryptoFin, Seum Tax Unveil Case Studies, Solutions for NTS Probes Into Crypto Investment Gains

CryptoFin, a digital-asset financial management platform operated by DoubleXSoft, and Seum Tax, a tax firm specializing in IT companies and digital assets, have unveiled practical case studies and solutions to help investors respond to National Tax Service source-of-funds investigations.

CryptoFin and Seum Tax held a demonstration event on October 28 at the Korea Foundation for Advanced Studies building in Seoul’s Gangnam district. The companies introduced response cases related to crypto source-of-funds investigations and demonstrated the platform’s key features. At the event, Kim Ji-ho, Seum Tax’s representative tax accountant, explained actual tax audit response cases, while DoubleXSoft Chief Executive Officer Choi Byung-jun presented the platform’s technology and service expansion plans.

The event was arranged as the need to substantiate the source of funds behind crypto investment gains grows. Since February, South Korea’s housing purchase financing plan form has included a new item for “proceeds from virtual asset sales,” requiring homebuyers who use money from crypto sales to list the amount separately. The two companies presented a way to integrate and analyze complex crypto trading records and, based on that data, prepare source-of-funds materials more efficiently.

In his presentation, Kim said explaining the source of funds for crypto investors can be more complex than a standard review of income or assets. Because crypto investment gains are not currently taxed, they are not reflected in income reported to the National Tax Service. As a result, investors may become subject to a source-of-funds investigation if spending or asset purchases increase sharply relative to reported income.

"In many cases, investors have difficulty explaining the source of funds because overseas exchanges do not provide trading records or because transactions involving personal wallets are hard to verify," Kim said. Using CryptoFin, records from multiple exchanges and wallets can be consolidated, while historical market prices and fund flows can be tracked to prepare supporting materials more efficiently.

Choi said the company had focused on using information technology to easily organize fragmented crypto transaction data. The solution was developed so tax accountants and accountants could prepare reports more conveniently using structured data.

CryptoFin provides digital-asset financial management services for individual investors, corporations, sole proprietors, and tax and accounting professionals. For individual investors, it offers integrated transaction records and tax calculations. For businesses, it supports crypto accounting treatment and the preparation of ledgers and financial statements. For tax and accounting professionals, it provides tools needed for client-specific transaction analysis, tax filing, and source-of-funds documentation.

The event also included a demonstration of features that link transaction records from domestic and overseas exchanges and personal wallets, automatically classify transaction types, identify transactions whose source of funds is difficult to verify, and generate supporting materials.

CryptoFin recently partnered with Seum Tax to support crypto investors facing National Tax Service source-of-funds investigations. Under the arrangement, CryptoFin collects and organizes transaction data, while Seum Tax designs the explanatory logic in line with the tax authority’s review standards. CryptoFin said it plans to expand adoption of its services for tax and accounting professionals.