South Korea's National Tax Service is investing 3 billion won (approximately $2 million) to advance an AI-driven cryptocurrency tracking system aimed at taxing virtual asset gains starting in 2027. The system is scheduled for a pilot run in November and will integrate data from exchanges and blockchain analysis to combat tax evasion following the establishment of a specialized enforcement division. This move comes as the South Korean government seeks to modernize regulation following security incidents, with the goal of achieving cross-border traceability of high-value cryptocurrency transactions.