South Korea Strengthens Cryptocurrency Supervision with Artificial Intelligence

South Korea’s government is stepping up its efforts to monitor the digital asset market. The tax authority has launched a new AI-powered system designed to analyze approximately 8 billion cryptocurrency transactions each year, according to NS3.AI. This move is part of the new regulations set to take effect throughout 2026.

AI in Service of Tax Control

South Korea’s National Tax Service recognizes the need to adapt its surveillance tools to the digital age. The AI-based system represents a significant shift in how the country approaches monitoring cryptocurrency transactions. The main goal is to identify suspicious patterns that could indicate tax evasion or fraud, enabling authorities to take preventive measures more effectively.

The ability to process millions of transactions simultaneously provides a considerable advantage over traditional audit methods. South Korea aims to position itself as a modern regulator that balances technological innovation with strict enforcement of tax laws.

New Obligations for the Crypto Sector

This initiative is part of a broader regulatory framework that requires exchange platforms to report detailed data on user activities. South Korea has established that crypto operators must comply with mandatory information disclosures, aligning with the global commitment of governments to combat digital tax fraud.

Implementing these requirements reflects South Korea’s determination to ensure that virtual asset taxation is enforced with the same rigor as in other economic sectors. The country expects these measures to strengthen tax collection and improve transparency in the cryptocurrency market.