Korea National Tax Service Begins Developing Cryptocurrency Investment Income Tracking System

SmartContractAuditor · 2026-03-12T07:31:14+00:00

The Korea National Tax Service (NTS) has begun developing a cryptocurrency investment income tracking system to support the government's tax collection on virtual assets starting from January . The system has a budget of 3 billion won and will collect individual transaction data by 2027 to enhance tax evasion detection capabilities. At the same time, there are plans to use AI to analyze abnormal transactions and ensure data sharing with various agencies.

SmartContractAuditor

2026-03-12 07:31:14

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Odaily Planet Daily reports that the Korean National Tax Service (NTS) announced on Thursday that it has begun preparing a tracking system to tax cryptocurrency investment gains, in line with the government’s expansionary fiscal policies and revenue needs. This move coincides with Korea’s plan to start taxing virtual asset profits from January next year.

The NTS has posted a tender announcement on the public procurement electronic bidding platform, proposing to develop an integrated system for analyzing virtual asset transactions and implementing corresponding taxes. The project budget is 3 billion Korean won (approximately $2.01 million). The winning bidder will be selected and contracted within this month. System design will commence in April, with multiple testing phases, followed by a trial run starting in November, and an official launch expected between November and December.

The NTS stated that the system is expected to begin collecting individual virtual asset transaction data from 2027. By systematically managing and analyzing large volumes of transaction data, the system aims to improve detection of tax evasion. The NTS plans to utilize AI and machine learning to analyze and track abnormal transaction types and patterns, and will share virtual asset analysis data and lists of suspected violators with agencies such as Korea Customs, the Statistics Korea, and the Bank of Korea.

Starting January next year, virtual asset income exceeding 2.5 million Korean won will be subject to a combined tax rate of 22%, including 20% income tax and 2% local income tax.

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