Cryptoupdated 1h ago3 min read
Archive photo · 6 April 2019South Korea Reviews Fourth Delay Of 22% Crypto Gains Tax, Eyes 2029 Start
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South Korea weighs a fourth delay, potentially starting crypto gains tax in 2029. Officials cite gaps in regulatory infrastructure and U.S. data-sharing lag as main obstacles.
Fourth delay under review
South Korea’s presidential office is reviewing a fourth postponement of the country’s 22% tax on crypto gains, with a 2029 start date gaining support among lawmakers and industry groups. The tax is scheduled to take effect January 1, 2027, but the presidential office said it is in talks with government agencies about a delay, citing gaps in the regulatory framework and the problem of treating domestic and overseas trades the same way. A presidential office official told Newsis that the absence of U.S. trading data is the biggest bottleneck, because the National Tax Service would have to chase overseas transactions one by one.
Democratic Party lawmaker Park Min-gyu and 13 colleagues filed a bill to push the tax to January 1 of the second year after the first international data exchange, which works out to 2029, while People Power Party lawmaker Song Eon-seok filed a separate bill to strike the crypto tax provisions from the law. The National Tax Service plans to publish a draft notice on taxable crypto income by the end of October, and the government expects to settle its position through inter-agency talks after audits wrap, with a decision through National Assembly tax revisions between late November and early December.
U.S. data gap drives debate
South Korea’s government and lawmakers have leaned toward another delay, citing inadequate tax infrastructure and concerns about tax fairness if the levy begins before the United States joins an international information exchange framework. A presidential office official said the biggest obstacle was that the United States does not share tax information with South Korea, and that tax authorities would have to track overseas transaction records individually if the tax took effect as scheduled. CoinDesk said the presidential office is leaning toward a delay amid concerns that the tax burden would fall largely on users of South Korea-based exchanges because authorities would struggle to track activity on U.S. platforms.
The Korea Digital Asset Business Association backed the 2029 date and asked the government to pass a digital asset law with stock-market-grade investor protections before any tax takes effect. Democratic Party leader Kim Min-seok called for a “thorough final review,” while Finance Minister Lee Hyeong-il told a parliamentary audit that the government would decide “after carefully considering and gathering all opinions from the industry and the National Assembly.”
What changes if delayed
South Korea’s crypto tax fight has been shaped by petitions and political pressure, with National Assembly petitions calling for abolition and postponement each receiving more than 50,000 signatures and a survey finding 73.7% of investors opposed implementing the current tax plan.
The Virtual Asset User Protection Act took effect in July 2024, but the Digital Asset Basic Act has not passed, and lawmakers have questioned taxing a market before the law defining it exists.
The Korea Digital Asset Business Association backed the 2029 date and asked for stock-market-grade investor protections before any tax takes effect, while Clean Clothes Campaign spokesperson Ineke Zeldenrust criticized audit systems in a separate context of European oversight.
The Financial Services Commission chairman Lee Eog-weon said the same day that the tax should “take various circumstances into full consideration,” and the government plans to decide after inter-agency consultations once audits wrap.
If the National Assembly amends the Income Tax Act, the start date could shift to 2029, but until then the National Tax Service still lists Jan. 1, 2027 as the start date.
