South Korea wants to delay crypto tax until 2029

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Crypto tax until 2029

Why the government decided to postpone the tax

One reason for the delay is the implementation of the international Crypto-Asset Reporting Framework (CARF). South Korea expects to begin exchanging crypto-related tax information with the U.S. in 2029. The government is concerned that introducing the tax earlier could put the domestic cryptocurrency market at a disadvantage compared with overseas platforms.

Authorities also want to take into account changes under upcoming digital asset legislation. In addition, the government has proposed allowing investors to carry forward losses from cryptocurrency transactions for three years, enabling them to offset taxable profits in subsequent years.

The government plans to submit amendments to the tax legislation during parliament's regular session in 2027. Detailed guidelines for taxing cryptocurrency transactions are expected to be prepared in the first half of 2028.

Crypto tax faces its fourth delay

The tax on cryptocurrency gains was originally scheduled to take effect in January 2022. However, its implementation was subsequently postponed to 2023, 2025, and 2027. If parliament approves the latest proposal, this will mark the fourth delay.

As recently as May 2026, the Ministry of Finance confirmed that the tax would take effect in January 2027. The latest proposal therefore represents a reversal of the government's previous position.

South Korean officials previously held consultations with representatives of the country's major crypto exchanges. Industry participants called for another postponement, citing unclear tax rules for certain types of transactions and insufficient time to prepare the necessary infrastructure.

How South Korea's crypto tax compares with other countries

South Korea's proposed 22% tax rate falls roughly in the middle of the range applied to cryptocurrency gains in other developed countries. In the United Kingdom, for example, profits from selling cryptocurrencies are subject to capital gains tax at rates of 18% or 24%, depending on the investor's income. In Italy, the standard rate increased to 33% in January 2026, although certain stablecoins qualify for a 26% rate.

Other countries offer considerably more favorable conditions. In Germany, under current rules, private investors are exempt from tax on cryptocurrency gains if they sell their assets after holding them for more than one year. In the U.S., gains from selling digital assets held for more than one year are subject to federal capital gains tax rates of 0%, 15%, or 20%, depending on income. Assets held for shorter periods are taxed at ordinary income tax rates.

As a reminder, South Korea is also considering a requirement for crypto exchanges to hold 99% of their assets in cold wallets.

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