South Korea has introduced a new artificial intelligence system designed to monitor cryptocurrency trading gains as authorities prepare to enforce taxes on digital asset investments.
The initiative is being developed by the country’s tax authority, the National Tax Service(NTS), which recently opened a public tender to build a platform capable of analyzing large volumes of cryptocurrency transaction data. The system will help regulators track profits from digital asset trading and identify cases where investors may have failed to report taxable income.
According to reports, the government has allocated roughly 3 billion Korean won (about $2 million) to develop the project. The platform will rely on artificial intelligence and machine-learning tools to analyze trading activity across cryptocurrency exchanges and blockchain networks. By processing large datasets, the system can detect patterns that may indicate hidden profits or potential tax evasion.
Officials say the technology is part of South Korea’s broader preparation for a new crypto tax framework expected to take effect in 2027. Under the policy, individuals who earn more than 2.5 million won (about $1,700) in annual cryptocurrency profits will be required to pay a 22% tax, which includes both national and local tax components.
The AI platform will also allow the tax authority to share insights with other government bodies involved in financial oversight, including the Bank of Korea and the Korea Custom Service . This coordinated approach is expected to strengthen monitoring of the country’s rapidly growing digital asset market.
Development of the system is expected to begin once a technology provider is selected. Authorities plan to start building the platform around April, followed by a testing phase later in the year. A pilot version could begin operating by November, with full deployment expected before the crypto tax rules take effect.
South Korea has one of the most active cryptocurrency markets in Asia, with millions of retail investors trading digital assets on local exchanges. As participation continues to grow, regulators are increasing efforts to ensure that profits from crypto trading are properly recorded and taxed.
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