Saxony is taking action against money laundering of crypto assets with AI technology!

Saxony is taking action against money laundering of crypto assets with AI technology!

A new chapter in the fight against financial crime began today in Saxony. With a clear focus on trading in crypto assets, Saxony is intensifying its efforts against money laundering and tax evasion. The use of cutting-edge technologies, including artificial intelligence (AI) and customized software, is seen as key to putting a stop to criminal activities. The diesachsen.de reports that this initiative was launched as part of a research cooperation between the State Office for Taxes and Finance and the Mittweida University of Applied Sciences.

Mittweida University of Applied Sciences has developed into an important center for application-oriented research in the areas of AI and blockchain. Under the direction of Prof. Dr. Ing. Andreas Ittner and IT specialists from the tax investigation special risk assessment unit are developing software that significantly simplifies the tracking and analysis of transactions with crypto assets. Finance Minister Christian Piwarz emphasizes that this software is intended to support tax investigators in identifying suspected cases more efficiently.

Cryptocurrencies on the rise

Trading in cryptocurrencies such as Bitcoin and Ethereum is booming. A development that also has tax implications: income from crypto assets is considered taxable in private assets. Anyone who sells their crypto assets within one year of purchase must declare this income in their tax return; after this period they are tax-free. This aspect has not been lost sight of in Saxony, especially in view of the new AI-supported software, which becomes active as soon as income-relevant information from crypto assets is withheld from the tax administration.

A particularly interesting point is the upcoming EU directive “DAC 8”, which will require crypto service providers to transmit transaction data to the tax authorities from 2027. This enables a European exchange of information that can be used specifically to combat tax fraud. Piwarz emphasizes how important modern analysis technology and international cooperation are in order to avoid legal vacuums in the digital space.

On the trail of fraud

In another context, it should be noted that many opportunities for fraud can lurk on the Internet. The websites that can potentially cause problems have multiplied in recent years. A 2018 article published on scamadviser.com and updated in October 2025 provides tips on what to do if fraud is suspected. It is recommended to ask for a refund at the first sign of fraud and point out which payment methods are often problematic in such cases. PayPal, for example, offers strong protection here as disputes can be filed within 180 days.

The world of cryptocurrencies, combined with the constant advancement of technology, shows the importance of being vigilant. Saxony, with its targeted initiatives, is setting a good example and could act as a pioneer in the fight against financial crime.