What is South Korea’s National Tax Service planning with crypto tracking?

National Tax Service is seeking software to track cryptocurrency transactions in real time. The goal is to detect tax evasion, monitor wallet activity, and investigate hidden or offshore crypto assets.

How much is South Korea spending on this crypto tracking tool?

The contract is valued at 146.5 million won, or roughly $99,500. This budget covers software licenses and delivery within 30 days of signing.

What capabilities will the crypto tracking software have?

The system is expected to monitor transactions in real time and visualise flows between wallets and exchanges. It will also support investigations into unreported income, inheritance transfers, and offshore tax evasion.

Why is South Korea investing in crypto monitoring now?

The move is tied to the country’s planned crypto tax rollout in 2027. Authorities are building enforcement tools in advance to ensure compliance once the tax regime is implemented.

What are the proposed crypto tax rules in South Korea?

Crypto gains above 2.5 million won (about $1,700) would be taxed at a combined 22% rate. This includes a 20% income tax and an additional 2% local tax.

Is the South Korea crypto tax policy confirmed?

The tax is planned for 2027 but remains politically contested. Some lawmakers have proposed scrapping it, citing concerns around fairness and enforcement.

How does AI fit into South Korea’s crypto monitoring strategy?

Authorities are also developing AI-based systems to analyse large volumes of crypto transaction data. These systems could improve detection of suspicious activity and automate compliance checks.

How could this affect crypto users in South Korea?

Crypto investors may face increased scrutiny and reporting requirements. This could reduce tax evasion but may also raise privacy concerns among users.

Cryptocurrency

Image for illustrative purposes only. Not a real photo.

South Korea seeks crypto tracking tool for taxes

Written by Jon CuthbertPublished Apr 22, 2026, 12:00 AM

National Tax Service has opened a tender for software to track cryptocurrency transactions as part of efforts to combat tax evasion.

The contract, valued at 146.5 million won (about $99,500), calls for transaction-tracking software licenses capable of monitoring virtual asset activity.

The system is expected to enable real-time tracking, visualisation of wallet-to-exchange flows, and investigations into hidden assets and offshore tax evasion.

Bids are scheduled between April 28 and April 30, with evaluation set for May 7 and delivery required within 30 days of contract signing.

The initiative forms part of a broader push to strengthen enforcement tools ahead of the country’s planned crypto tax rollout in 2027.

Earlier reports indicate authorities are also developing AI-driven systems to analyse large volumes of crypto transaction data for compliance monitoring.

Under the proposed tax regime, gains above 2.5 million won would face a combined 22% levy, though the policy remains politically contested in South Korea.