Italy saw the share of transactions that the international transaction information reporting framework failed to capture soar to 97% in the first year it introduced crypto asset taxation. The result: funds seeking to avoid taxes rapidly migrated to personal wallets and decentralized exchanges. Concerns are now mounting that the same phenomenon could unfold in South Korea, which is set to implement crypto taxation in January next year.

According to an analysis by blockchain research firm Tiger Research using data from global blockchain analytics company Chainalysis, Italy’s share of non-covered pathways under the Crypto-Asset Reporting Framework (CARF) surged to 97.2% in 2023, the first year of taxation. That marked a 35.9…