NTS Commissions $2M AI Platform for Crypto Surveillance
South Korea's National Tax Service (NTS) has initiated a procurement process for a 3 billion won (approximately $2 million) project to develop an artificial intelligence-backed platform for monitoring cryptocurrency transactions. The system is designed to process and analyze large volumes of trading data to automatically identify irregular transaction patterns and flag potential tax evasion. According to the development timeline, the NTS aims to select a contractor by March, begin system design in April, and launch a pilot program by November ahead of a full rollout.
22% Crypto Gains Tax Set for January 2027
This technological investment underpins the government's plan to finally implement its long-delayed crypto tax regime starting in January 2027. The policy, originally passed in 2020 and postponed three times, imposes a 22% tax—comprising a 20% income tax and a 2% local tax—on annual cryptocurrency profits that exceed 2.5 million won ($1,700). The firm 2027 start date ends years of uncertainty and forces investors and virtual asset service providers to prepare for a new era of tax compliance and reporting. The system is intended to automate the identification of taxable events and hidden income, streamlining enforcement.
New System to Integrate with Bank of Korea
The AI platform’s reach will extend beyond the NTS. The tax authority plans to share its data analysis and lists of suspected tax offenders with other key financial agencies, including the Korea Customs Service and the Bank of Korea. This inter-agency cooperation signals a comprehensive government effort to integrate digital asset oversight into the country's broader financial surveillance framework. By centralizing transaction analysis, authorities aim to close loopholes used for illicit activities and ensure crypto market participants are held to the same tax standards as those in traditional financial markets.
