South Korea's Tax Agency Is Developing a $2.2 Million AI System to Track Crypto Transactions and Combat Tax Evasion

ChainCatcher report: According to market sources, the National Tax Service of South Korea is building an AI system costing approximately $2.2 million to track cryptocurrency transactions and identify tax evaders, with completion expected by the end of 2026. The system will integrate exchange transaction records with blockchain data to detect suspicious activities such as money laundering, unreported gifts, and offshore tax evasion, and will extend its tracking scope to non-custodial wallets. The National Tax Service is coordinating with five major exchanges, including Upbit and Bithumb, to finalize implementation details, with final tax guidelines expected by the end of 2026. A survey by the Financial Services Commission revealed that South Korea has over 11 million verified cryptocurrency investors, but growth has significantly slowed, with the growth rate of tradable accounts dropping from 25% in the first half of 2024 to 3% in the second half. The South Korean government has confirmed that a 22% tax on cryptocurrency asset gains will take effect on January 1, 2027, applying to annual profits exceeding approximately $1,800. This tax has been delayed twice from its original implementation date of 2025.