South Korea Plans 22% Tax on Virtual Asset Gains Above 2.5 Million Won

South Korea’s National Tax Service is developing a $2.2 million AI monitoring system to track crypto transactions before the planned 22% tax on virtual asset gains begins on Jan. 1, 2027.

Summary

South Korea’s National Tax Service is building a $2.2 million artificial intelligence system to track cryptocurrency transactions and detect tax evasion by late 2026. The system is designed to combine data from crypto exchanges and blockchain records, including activity involving non-custodial wallets. The effort comes ahead of South Korea’s planned 22% tax on virtual asset gains above 2.5 million won, which the new report says is scheduled to take effect on Jan. 1, 2027. The development adds a concrete enforcement mechanism to the country’s broader move to bring crypto trading under a formal tax and reporting framework.

Terms & Concepts
  • Virtual assets: A regulatory term commonly used for cryptocurrencies and other digital tokens traded or transferred on blockchain networks.
  • Blockchain: A distributed digital ledger that records transactions across a network without relying on a central operator.
  • Non-custodial wallets: Crypto wallets controlled directly by users, without a third-party institution holding the private keys or assets.