The South Korean National Tax Service is developing an AI system to track cryptocurrency transactions and apprehend tax evaders.

CoinFeed reported on May 11th that, according to Cryptopolitan, the South Korean National Tax Service is building an AI system costing approximately $2.2 million to track cryptocurrency transactions and track tax evaders, expected to be completed by the end of 2026. The system will integrate exchange transaction records with blockchain data to identify suspicious transactions such as money laundering, undeclared gifts, and offshore tax evasion, and will extend its tracking scope to non-custodial wallets. The National Tax Service is coordinating implementation details with five major exchanges, including Upbit and Bithumb, with final tax guidelines expected to be released by the end of 2026. A survey by the South Korean Financial Services Commission shows that the country has verified over 11 million cryptocurrency investors, but the growth rate has slowed significantly, with the growth rate of tradable accounts dropping from 25% in the first half of 2024 to 3% in the second half.