South Korea’s tax authority has introduced a new system that is designed to track crypto transactions and collect taxes on profits.
The initiative is part of the government’s plan to start taxing profits from virtual assets starting January 2027. Officials say the system will help them monitor transactions more closely and ensure that all the fuss are properly paid on every gain made from cryptocurrency.
The country’s agency in charge of the dues, National Tax Service (NTS), confirmed this update and stated that it has started making preparations to develop a digital tracking system that is focused on crypto activities. The move aligns with the government’s broader fiscal strategy that aims to expand revenue sources as part of its economic policy.
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According to the NTS, the agency has opened a public bidding process in order to build an integrated system that will analyze virtual asset transactions. The system will collect and process large amounts of crypto trading data in order to identify taxable profits made by individuals.
The project is estimated to cost around 3 billion won, which is about $2.02 million, and it has been listed on the electronic bidding platform operated by the Public Procurement Service.
Use of AI and Data Sharing for the New Tax Reform
As part of the project, the NTS plans to integrate advanced technologies like artificial intelligence and machine learning into the system. These technologies will help the agency analyze unusual transaction patterns and identify any kind of suspicious crypto activities that indicate individual tax violations.
The authority also plans to share important details with other government institutions. Some of which include the Korea Customs Service, the Bank of Korea, and the Ministry of Data and Statistics.
By cooperating with multiple agencies, the government hopes to strengthen oversight of digital asset transactions and reduce the risk of financial crimes or hidden taxable income.
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