South Korea’s National Tax Service is developing an advanced artificial intelligence (AI) system aimed at effectively monitoring and analyzing cryptocurrency transactions. This system is designed to analyze approximately 8 billion crypto transactions annually to prevent tax evasion and other financial crimes. The initiative supports the upcoming introduction of new virtual asset tax regulations and mandatory exchange data reporting expected next year. Previously, South Korea has implemented various measures to enhance transparency and curb financial crimes in the cryptocurrency market. With the rising popularity of cryptocurrencies, countries worldwide are strengthening financial oversight to safeguard their financial systems. AI technology enables rapid analysis of large volumes of data, providing greater accuracy and efficiency compared to human resources. The new system will not only help prevent tax evasion but also promote financial transparency among cryptocurrency exchanges and investors. It will facilitate the government’s enforcement of financial regulations, thereby increasing confidence in the cryptocurrency market. However, issues concerning user privacy protection and data security also gain importance and require appropriate attention. In the future, such AI systems could play a key role in improving transparency and the rule of law within the global cryptocurrency financial system. Nonetheless, governments must adopt balanced strategies that address technological complexities and legal requirements to maintain an equilibrium between innovation and privacy.
Source: binance
