South Korea unveils AI system to track crypto profits

South Korea is developing a $2M AI system to monitor crypto transactions and enforce a 22% tax on gains over 2.5M won, starting January 2027.

South Korea is moving forward with the development of an AI-powered system to monitor and analyze cryptocurrency transactions, allocating a budget of approximately $2.02 million. The National Tax Service (NTS) has started the bidding process, with system design scheduled to begin in April and a pilot launch planned for November. This advanced system will aggregate data from domestic exchanges, blockchain analytics, and tax databases. By leveraging artificial intelligence and machine learning, it aims to detect unusual trading patterns, tax evasion, and market manipulation. The system will also track asset movements across exchanges and private wallets, linking anonymous addresses to real-world identities. The project is designed to strengthen oversight of virtual asset transactions ahead of a new tax regime. Starting January 2027, South Korea will impose a 22% tax on crypto gains exceeding 2.5 million won, with the AI system serving as the enforcement backbone for these regulations.