As it gets closer to imposing taxes on gains from digital assets, South Korea is getting ready to implement artificial intelligence techniques to track cryptocurrency trading activities.
The National Tax Service of the nation is reportedly holding a bidding competition to develop an AI-powered platform capable of analysing massive volumes of data related to cryptocurrency transactions. An estimated 3 billion Korean won, or around $2 million, would be spent on the project.
To spot unusual trade patterns and possible tax evasion, the system will employ machine learning and artificial intelligence. When the government starts taxing gains from digital assets, authorities claim the platform will make it easier for them to monitor cryptocurrency income.
In January 2027, South Korea intends to implement the tax. Cryptocurrency revenues exceeding 2.5 million won, or around $1,700, would be subject to a combined tax rate of 22% under the existing framework, which includes both income tax and a local tax.
Since its first approval in 2020, the tax policy has seen multiple delays. Political differences and worries expressed by the cryptocurrency sector caused lawmakers to delay the implementation.
The AI platform will assist the tax authority in handling massive amounts of blockchain transaction data if it is put into practice. Additionally, it will help track taxpayers who might not disclose their revenues from digital assets and uncover hidden income.
Officials say the system could also share information with other government bodies, including the Korea Customs Service and the Bank of Korea.
You need to login in order to Like
Leave a comment