South Korea Boosts Crypto Oversight with Enhanced Transaction Tracking
South Korea's National Tax Service (NTS) is expanding its digital asset tracking capabilities to curb tax evasion and improve collection efficiency. The agency's national tax administration operating plan outlines a significant escalation in its approach to cryptocurrency-related tax compliance.
The NTS plans to add more sophisticated digital-asset transaction tracking programs, which will enhance the agency's ability to trace complex transaction flows, including those involving decentralized finance (DeFi) platforms and cross-border transfers. This initiative builds on existing measures that require virtual asset service providers to report transaction data.
The plan also emphasizes the advancement of an AI-based forensic system, which will assist investigators in analyzing large volumes of financial data and identifying patterns indicative of tax evasion. The technology is part of a broader trend among tax authorities worldwide to leverage artificial intelligence and machine learning for compliance monitoring.