South Korea’s Tax Agency to Launch Crypto Tracking System in July, Targeting Self-Custody Wallets and Mixers

South Korea is scheduled to introduce separate taxation of virtual-asset income in January 2027. Annual gains above 2.5 million won will be taxed at 20%, with local tax charged separately. Because funds can be moved to self-custody wallets such as MetaMask or routed through mixers to conceal their trail, the National Tax Service is strengthening its on-chain tax-audit capabilities.

The NTS recently opened public bidding for virtual-asset transaction-tracking software and plans to formally launch the system in July. It will be able to scan 45 blockchains, identify about 70 million types of virtual assets, trace transactions involving self-custody wallets and unravel fund flows through mixers, helping authorities identify undeclared income and tax-evasion cases.