Korea Unveils AI-Powered Tax Enforcement, Brazil's Crypto Industry Pushes Back Against Stablecoin Levy

Regulatory efforts are intensifying in the global cryptocurrency market as South Korea and Brazil take differing approaches. The Korean government has embarked on a project to develop an AI-based system for monitoring digital asset transactions, with the aim of curbing tax evasion and ensuring fairness in taxation.

The new system will utilize machine learning algorithms to analyze transaction data and identify potential tax offenders. According to local media reports, the National Tax Service (NTS) has allocated KRW 3 billion ($2.02 million) for the project, which is expected to be operational by November or December this year.

In Brazil, industry groups representing over 850 companies have voiced strong opposition to the government's proposed levy on stablecoin transactions. The planned tax would apply a 3.5% rate on purchases and remittances made with stablecoins, with exemptions for transactions below BRL 10,000 ($1,910).