Challenges in Investigating Sources of Funds for Virtual Assets: Issues with Closed Exchanges and Personal Wallets

Concerns have been raised that the investigation into the sources of funds for digital assets may be prolonged due to difficulties in securing and interpreting transaction records from closed exchanges and personal wallets. On the 28th, Kim Ji-ho, CEO of Seum Tax, explained these challenges during an event held in Gangnam, Seoul. The main issues include securing records from closed exchanges, understanding the nature of transactions in personal wallets, and analyzing records from overseas exchanges. Kim stated, "When an exchange closes, it becomes difficult to obtain original transaction data, and wallet records only show asset movement, making it hard to confirm specific transaction purposes." He also mentioned delays in data provision from overseas exchanges. He emphasized the use of blockchain explorers and tracking programs to compare wallet addresses and transaction hashes, which can help estimate asset movements. Sharing his experience with organizing data using Cryptopin, he noted that this tool is useful for analyzing deposit and withdrawal records of exchanges and personal wallets. Kim added that the source of funds cannot be determined solely based on transaction analysis; the taxpayer's transaction history and retained documents must also be reviewed.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.