South Korea to Launch AI-Powered Crypto Tax Tracker

South Korea's National Tax Service (NTS) has launched a procurement bid for an AI-powered platform to track cryptocurrency transactions and detect tax evasion. The system is designed to process large volumes of crypto trading data using artificial intelligence and machine learning, flagging unusual transaction patterns that may indicate hidden income or unpaid taxes.

The NTS plans to select a contractor by March, with system design expected to begin in April. Testing will run throughout the year, followed by a pilot program scheduled for November. The full system is expected to go live by late 2026.

South Korea plans to begin taxing cryptocurrency investment gains in January 2027, applying a combined 22% levy made up of a 20% income tax and a 2% local surcharge. The tax applies to annual gains exceeding 2.5 million won, or roughly $1,700.

The law behind this tax was passed in 2020 but has been delayed three times since then due to industry opposition and disagreements over tax thresholds.