CryptoFin, Seum Tax Unveil Case Studies, Tools to Help Crypto Investors Answer NTS Source-of-Funds Probes

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

On October 28, CryptoFin and Seum Tax held a demonstration event at the Korea Foundation for Advanced Studies building in Seoul’s Gangnam district. The companies presented cases involving crypto-related source-of-funds probes and showcased the platform’s main features. At the event, Seum Tax Chief Tax Accountant Kim Ji-ho explained actual tax-investigation response cases, while DoubleXSoft Chief Executive Officer Choi Byung-jun outlined the platform’s technology and service expansion plans.

The event was held as the need to document the source of funds behind crypto investment gains grows. Since February, South Korea has added a “proceeds from virtual-asset sales” category to the funding plan form required for home purchases. Buyers who use money from crypto sales to buy housing must now report that amount separately. The two companies presented a way to consolidate and analyze complex crypto transaction records and use the data to prepare source-of-funds documentation more efficiently.

Kim said proving the source of funds for crypto investors can be more complex than standard income or asset reviews. 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 source-of-funds investigations if spending or asset purchases increase sharply relative to reported income.

“Many people struggle to explain the source of funds because overseas exchanges do not provide transaction histories or because transactions involving personal wallets are difficult to verify,” Kim said. Using CryptoFin, users can integrate records from multiple exchanges and wallets, track market prices at the time and trace the flow of funds, helping them prepare supporting documents more efficiently.

Choi said the company focused on using information technology to organize fragmented crypto trading data more easily. The solution was developed so tax accountants and CPAs can prepare reports more conveniently based on organized data.

CryptoFin provides cryptocurrency financial management services for users ranging from individual investors to corporations, sole proprietors, and tax and accounting professionals. For individual investors, it offers consolidated transaction records and tax calculations. For companies, it supports crypto accounting treatment and the preparation of ledgers and financial statements. For tax and accounting professionals, it provides functions needed for client-by-client transaction analysis, tax filing and source-of-funds documentation.

At the event, the company also demonstrated how the platform links transaction records from domestic and overseas exchanges as well as personal wallets, automatically classifies transaction types, identifies transactions that are difficult to verify for source-of-funds purposes, and generates supporting documentation.

CryptoFin recently partnered with Seum Tax to help crypto investors respond to National Tax Service source-of-funds investigations. Under the arrangement, CryptoFin gathers and organizes transaction data, while Seum Tax uses that information to build supporting explanations aligned with the tax authority’s review standards. CryptoFin said it plans to expand adoption of its services for tax and accounting professionals.