South Korea is taking significant steps towards regulating cryptocurrency investments as the National Tax Service (NTS) unveils plans for an AI-driven system to track profits from virtual assets. The source notes that this initiative is part of a broader effort to enhance tax enforcement in the rapidly evolving crypto landscape.
Budget Allocation for Cryptocurrency Tax System
The NTS has allocated a budget of approximately 3 billion won (around 2 million USD) for the development of this system, which is set to begin taxing profits from cryptocurrency investments in January 2027. The project aims to meticulously collect data on individual virtual asset transactions, ensuring that all profits are accurately reported and taxed.
Pilot Operation and Full Implementation
A pilot operation of the AI system is expected to commence in November, following a testing phase. Full implementation of the system is planned by the end of the year, marking a significant milestone in South Korea's approach to cryptocurrency regulation. This move comes in response to increasing scrutiny over crypto management in the country, as authorities seek to bolster tax compliance and oversight in the digital asset space.
Recently, South Korea's Financial Services Commission announced the exclusion of US dollar-pegged stablecoins from corporate investment frameworks, a move that contrasts with the National Tax Service's new AI-driven profit tracking system for cryptocurrencies. For more details, see read more.
