South Korea’s tax authority is preparing to use artificial intelligence to monitor cryptocurrency investment gains as the government moves closer to implementing a long-delayed digital asset tax.
According to The Korea Times, the National Tax Service (NTS) has opened a bid to develop an AI-powered system to analyze cryptocurrency transaction data ahead of the planned 2027 tax on crypto gains.
The project, valued at around 3 billion Korean won ($2 million), aims to create an integrated platform capable of processing large volumes of crypto trading data. The NTS plans to leverage AI and machine learning to identify unusual transaction patterns and detect potential tax evasion.
The move aligns with South Korea’s plan to begin taxing cryptocurrency investment gains in January 2027, imposing a 22% tax on profits exceeding 2.5 million won ($1,700).
NTS to Develop AI System for Crypto Transaction Analysis
South Korea’s National Tax Service (NTS) plans to deploy an AI-backed system to analyze cryptocurrency transaction data, The Korea Times reports. The tax authority aims to select a contractor by March, begin system design in April, and run testing phases throughout the year. A pilot program is scheduled for November, with the full system expected to launch between November and December 2026.
The NTS said the platform will allow authorities to systematically manage and analyze large volumes of virtual asset transactions, supporting tax audits, detecting hidden income from delinquent taxpayers, and identifying potential crypto-related tax evasion. The agency also plans to share analysis data and lists of suspected offenders with other authorities, including the Korea Customs Service and the Bank of Korea.
South Korea Prepares for 2027 Crypto Tax Rollout
South Korea’s cryptocurrency tax framework has been repeatedly postponed despite approval several years ago. In 2024, lawmakers debated whether to implement the proposed crypto gains tax in 2025 or delay it further amid industry opposition and political disagreements over thresholds. Implementation has already been delayed three times since the law was passed in 2020.
The policy would impose a 20% income tax plus an additional 2% local tax on annual cryptocurrency gains exceeding 2.5 million won ($1,700). According to the Korea Times, the tax is now expected to take effect in January 2027.
