South Korea nears completion of cryptocurrency regulation bill

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South Korea nears completion

Crypto tax implementation could be delayed again

As the legislation moves forward, lawmakers have expressed concerns that cryptocurrency taxation could begin before the country establishes a comprehensive regulatory framework for the industry.

The tax was originally scheduled to take effect much earlier, but its implementation has already been postponed three times due to concerns over tax fairness and insufficient infrastructure.

In May 2026, a petition calling for the tax to be abolished collected 50,000 signatures, meeting the threshold required for parliamentary review. Another petition proposing a two-year delay also reached the same threshold.

Kim Min-seok, leader of the ruling Democratic Party of Korea, said on October 22 that he was reviewing various proposals on the issue. According to Yonhap, he noted that growing public demands and differing opinions required further examination before a final decision could be made.

His comments suggest that authorities may be softening their position after previously insisting that cryptocurrency taxation would begin in 2027.

Meanwhile, the National Tax Service continues preparations under the original timetable. The agency plans to finalize its draft digital asset tax notices by October 30, followed by a preliminary review and public consultation in November.

The final decision on the tax implementation date has therefore not yet been made. Authorities must determine whether to introduce taxation while the new regulatory framework is still being developed or give the cryptocurrency industry additional time to adapt.

How the U.S. and Europe regulate cryptocurrencies

Cryptocurrency regulation in the U.S. is also still evolving. In July 2025, authorities passed the GENIUS Act, establishing rules for the issuance and circulation of payment stablecoins. The law is scheduled to take effect on January 18, 2027, while banking regulator OCC approved final rules for its implementation on October 21, 2026. Meanwhile, the broader CLARITY Act, which aims to clarify the responsibilities of the SEC and CFTC in overseeing cryptocurrency markets, has yet to pass Congress due to ongoing disagreements.

The situation in the European Union is more established. The Markets in Crypto-Assets Regulation (MiCA), which introduces unified requirements for cryptocurrency companies and stablecoin issuers, is already in effect. The EU-wide transitional period ended on July 1, 2026, after which crypto-asset service providers were required to hold the appropriate licenses. Companies that failed to obtain authorization must stop providing these services to clients in the EU.

As a reminder, it was previously reported that South Korea was moving closer to comprehensive cryptocurrency regulation.

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