South Korea to Deploy AI System to Track Crypto Profits Ahead of 2027 Tax Rollout

South Korea’s tax authority is turning to artificial intelligence to strengthen oversight of cryptocurrency transactions as the country prepares to finally implement a long-delayed tax on digital asset gains. The move signals a more aggressive effort by regulators to ensure transparency in the fast-growing crypto market while preventing tax evasion.

According to a report by the Korea Times, the National Tax Service (NTS) has opened a bidding process for the development of an AI-powered platform designed to analyze cryptocurrency trading data. The system is expected to help authorities track investment profits and identify suspicious activities ahead of the country’s planned digital asset tax in 2027.

The National Tax Service (NTS) has begun preparations to build a tracking system to levy taxes on cryptocurrency investment gains, in line with the government’s expansionary fiscal policy and the need for additional revenue, the agency said Thursday.

— The Korea Times (@koreatimescokr) March 12, 2026

The project is estimated to cost about 3 billion Korean won (approximately $2 million) and will focus on building an integrated data analysis platform capable of processing large volumes of crypto transaction information.

AI platform to analyze crypto trading patterns

The proposed system will rely on artificial intelligence and machine learning to identify unusual transaction patterns and detect potential cases of tax evasion. By analyzing trading data at scale, the platform is expected to give regulators a clearer view of crypto-related income and improve enforcement capabilities.

The NTS plans to select a contractor for the project by March, with system design expected to begin in April. Testing phases will follow throughout the year, leading to a pilot launch scheduled for November. If development proceeds as planned, the full system could go live between November and December.

In addition, the NTS intends to share analytical results and lists of suspected offenders with other government agencies, including the Korea Customs Service and the Bank of Korea, to strengthen inter-agency enforcement.

In early 2026, the NTS faced criticism after a security breach where a wallet recovery phrase was inadvertently exposed in a public report, leading to a temporary loss of approximately $4.8 million in tokens. In response, a new task force was established in March 2026 to enhance virtual asset security and protect taxpayer data. 

Long-delayed crypto tax expected in 2027

South Korea’s proposed cryptocurrency tax framework has faced repeated delays despite being approved in 2020. Policymakers have pushed back implementation several times due to industry opposition and political debates over appropriate tax thresholds.

Under the current plan, the government intends to impose a 20% income tax on crypto investment gains, along with an additional 2% local tax. The combined 22% levy will apply to annual profits exceeding 2.5 million Korean won (about $1,700).

With the launch of its AI monitoring system underway, authorities appear to be laying the groundwork for stricter enforcement when the tax finally takes effect in January 2027.