South Korea's National Tax Service has started preparations to build a tracking system for taxing cryptocurrency investment gains, aligning with the government's expansionary fiscal policy and revenue needs. The system is being developed ahead of tax collection on virtual asset profits beginning January next year. The 3 billion won project, now open for bids, will use AI to analyze transaction data.
The National Tax Service (NTS) announced on Thursday, March 12, 2026, that it has opened a bid to develop an integrated system for analyzing virtual asset transactions to enable taxation. Valued at 3 billion won ($2.02 million), the project was posted on the Public Procurement Service's electronic bidding platform. A successful bidder will be selected and contracted within this month, with system design starting in April. After various test runs, a pilot operation will begin in November, and the system will launch between November and December.
"It is expected to serve our goal of collecting individuals’ virtual asset transaction data starting in 2027," the NTS said. The system aims to systematically manage and analyze large volumes of transaction data to detect potential tax evasion, including through audits and identifying hidden income of delinquent taxpayers. In particular, it will employ artificial intelligence and machine learning to track unusual transaction types and patterns.
The NTS also plans to share virtual asset analysis data and lists of suspected offenders with other agencies, such as the Korea Customs Service, Ministry of Data and Statistics, and Bank of Korea. From January next year, a total tax rate of 22 percent—including 20 percent income tax and 2 percent local income tax—will apply to virtual asset income exceeding 2.5 million won.
This initiative aligns with the government's expansionary fiscal policy and supports efforts to increase revenue through targeted measures.
