South Korea's National Tax Service is developing a $2.2 million AI system to track cryptocurrency transactions and combat tax evasion, with completion targeted by the end of 2026. The system will integrate exchange transaction records with blockchain data to identify suspicious activities, including money laundering and offshore tax evasion. It will also extend its tracking capabilities to non-custodial wallets. The tax agency is collaborating with five major exchanges, such as Upbit and Bithumb, to finalize implementation details, with comprehensive tax guidelines expected by the end of 2026. A survey by the Financial Services Commission revealed over 11 million verified cryptocurrency investors in South Korea, though the growth rate of tradable accounts has slowed significantly.