Japan's National Tax Agency Officially Launches New "KSK2" System, AI Strengthens Cryptocurrency Declaration Verification

According to CoinPost, Japan’s National Tax Agency officially launched the next-generation core system “KSK2” on September 24, marking the first major upgrade in approximately 25 years. Centered on the My Number system for individuals and corporate identification numbers for entities, the new system enables unified management of personal and corporate data while deploying AI technology to strengthen the detection of fraudulent declarations. Cryptocurrency traders and investors are particularly affected, as annual transaction reports filed by exchanges, bank account deposit and withdrawal records, and Common Reporting Standard (CRS) data shared with overseas tax authorities have all been integrated into the AI’s primary analysis framework. Additionally, social media posts referencing topics such as “cryptocurrency profits” will be cross-referenced with declared data, markedly raising the risk of tax investigations. The agency has simultaneously consolidated cross-sector data linking corporations and individuals, making it easier to identify discrepancies between assets and income for investors purchasing cryptocurrencies through private companies or using gifted and inherited funds. Industry insiders warn that properly safeguarding annual transaction reports and submitting accurate, complete declarations has become an immediate priority.