According to CoinMeta, the National Tax Service of South Korea plans to introduce commercial cryptocurrency tracking software in order to tax income generated by private wallets in 2027. This software will be used to track and analyze the flow of digital assets between wallets, similar tools are already being used by prosecutors, police, and the United States Internal Revenue Service (IRS). The tax service acknowledges that the nature of private wallet transactions makes it difficult to identify unreported transactions, and they plan to use the tracking system to prevent loopholes in law enforcement. Tax officials stated that income from the transfer or lending of digital assets, whether held in private wallets or overseas exchanges, may be taxed. It is expected that starting from January 1, 2027, the portion of annual income exceeding 2.5 million Korean won will be subject to a 20% national income tax and a 2% local income tax, for a total tax rate of 22%.