Yes

>>South Korea's tax office initiates on-chain monitoring in preparation for the 2027 tax.

South Korea's tax office initiates on-chain monitoring in preparation for the 2027 tax.

crypthub

5/10/2026, 12:20:12 PM

AI System Development

South Korea’s National Tax Service launched a $2.2 million AI project on May 8 to monitor crypto transactions and catch tax evaders. The system is slated for completion by the end of 2026. It will integrate exchange filings with blockchain data to flag money‑laundering, unreported gifts, and offshore evasion.

Slowing Investor Growth

A Financial Services Commission survey shows 11 million verified crypto investors, nearly double the 5.58 million in 2021. However, account growth fell from 25 % in H1 2024 to just 3 % in H2 2024. Industry analysts cite weak returns and the lack of derivatives or leverage on Korean spot‑only exchanges.

On‑chain Tracking Features

The AI platform will map fund flows between wallets and apply pattern‑recognition to detect suspicious activity. It includes monitoring of non‑custodial wallets, a gap that exchange reports alone cannot fill. The technology aims to provide a comprehensive view of crypto asset movements for tax enforcement.

Upcoming Crypto Gains Tax

A 22 % tax on crypto profits—20 % national income tax plus 2 % local tax—takes effect on Jan 1 2027. The rule applies to gains above 2.5 million won (~$1,800) per year. The NTS is finalizing guidelines with major exchanges, and some traders are already considering offshore platforms to avoid the levy.