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South Korea Tenders AI System to Track Crypto Gains Ahead of 2027 Tax

Overseas platforms will relay Korean users’ activity under the OECD’s CARF, narrowing offshore routes before the levy takes effect.

Overview

  • The National Tax Service has issued a Public Procurement Service tender for a "Comprehensive System for Virtual Asset Transaction Analysis" worth about ₩3 billion, with a contractor expected to be selected this month.
  • Design is slated to begin in April 2026, a pilot is targeted for November 2026, and full deployment is planned for late 2026 to support a 22% tax on annual crypto profits above ₩2.5 million from January 1, 2027.
  • The AI-driven "Virtual Asset Integrated Analysis System" is designed to process roughly 8 billion transactions a year by aggregating exchange, wallet, and tax data to detect evasion, trace cross-platform flows, link addresses to identities, and flag market manipulation.
  • Under the OECD’s Crypto-Asset Reporting Framework, overseas exchanges in participating jurisdictions began mandatory data collection on January 1, 2026, with the first international data exchange scheduled for September 2027.
  • Parallel measures include proposed caps limiting major shareholders of domestic exchanges to 20% with limited 34% exceptions and multi-year restructuring, while confidence has been dented by an NTS seed-phrase leak that enabled a $4.4–$5.2 million theft.