South Korea’s National Tax Service (NTS) is moving ahead of its upcoming crypto tax regime with a large-scale blockchain analytics initiative. In a public procurement notice issued in April 2026, the agency sought a “comprehensive virtual asset transaction analysis system” capable of tracking 70 million virtual assets across 45 blockchains.
According to the disclosed specifications, the project carries a budget of 3 billion won and is expected to deliver on-chain tracing capabilities comparable to tools offered by major analytics firms such as Chainalysis and TRM Labs. The system is designed to monitor about 8 billion transactions per year in real time and visualize fund flows between specific wallets and exchanges, giving tax authorities a stronger basis for detecting hidden holdings and tax evasion.
Self-custody wallets and mixers move into focus
One of the most notable features of the plan is the explicit inclusion of non-custodial wallets such as MetaMask and Phantom. In past enforcement efforts, authorities often lost visibility once assets were withdrawn from centralized exchanges into private wallets. The new system is intended to close that gap.
The NTS also wants the software to include de-obfuscation functions for mixers, allowing investigators to reconstruct transaction routes that have been processed through coin-mixing services. That broadens oversight beyond exchange accounts to include wallet-to-wallet transfers and more complex on-chain activity designed to reduce traceability.
Built ahead of South Korea’s 2027 crypto tax launch
The rollout schedule shows a trial operation beginning in November 2026, with full deployment planned for November to December of the same year. That timing is significant because South Korea’s crypto asset income tax is set to take effect on January 1, 2027. The tax rate has been set at 22%, consisting of a 20% income tax and a 2% local tax, with an annual exemption threshold of 2.5 million won.
After four delays to the tax framework, the government now appears determined to build the monitoring infrastructure first and enforce the rules with a full year of on-chain records available for comparison. If undeclared or concealed assets are identified, authorities can freeze exchange accounts and restrict deposits and withdrawals. The scope of enforcement also includes unreported crypto inheritance and gifts, underscoring a broader tightening of tax oversight in one of Asia’s most active digital asset markets.