South Korea may delay its planned tax on cryptocurrency profits for the fourth time, with a new proposal that could push the start date to January 1, 2029. The tax is set to take effect on January 1, 2027, under the current law. However, government officials and lawmakers have raised concerns about tax fairness, gaps in tax systems, and a lack of access to overseas crypto transaction data.
The presidential office is reviewing the proposal with the relevant government agencies. News reports on October 26, 2026, said that the government may support another delay. However, no final decision has been made yet.
The main concern is that South Korean tax officials may not have enough data to calculate the profits of people who use foreign crypto exchanges. The United States, home to several major crypto platforms, is set to join an international system for the exchange of crypto tax data in 2029. South Korea plans to join the same system in 2027.
This gap has raised questions about whether local investors could face a heavier tax burden than people who use overseas platforms. A delay until 2029 may give the government more time to improve its tax systems and create fairer rules for crypto users.
What Is South Korea’s Crypto Gains Tax?
South Korea first introduced its crypto tax plan through a change to the Income Tax Act in 2020. The goal was to tax profits from the sale or loan of virtual assets, much like other forms of taxable income.
Under the current plan, annual crypto gains above a basic deduction of 2.5 million won would face a tax rate of 22%, which includes local income tax. The deduction is about $1,888 to $1,890, based on the exchange rates cited in recent reports.
For example, if a person makes a taxable crypto profit of 10 million won in one year, the basic deduction would reduce the amount subject to tax to 7.5 million won. At a rate of 22%, the tax on that amount would be 1.65 million won, before any other permitted adjustments.
The rules apply to income from the transfer or loan of virtual assets. The taxable amount would take account of the purchase cost and other permitted expenses. The exact tax due would depend on the facts of each case and the final rules.
The tax was first due to start in January 2022. The government later moved the date to 2023, then to 2025, and then to January 2027. If lawmakers approve the latest proposal, the start date would move to 2029.
The repeated delays have made the issue a major topic in South Korea’s crypto market. Some investors want more time for clear rules and better systems. Others argue that the government should now put the tax into effect.
Why Does the Government Want to Delay the Tax?
One major reason for the proposed delay is the lack of full access to overseas crypto transaction data. Tax officials need reliable records to work out how much profit a person has made and how much tax they owe.
Crypto users may hold assets on local exchanges, foreign platforms, private wallets, and decentralised finance services. They may also move coins between these accounts. Such transfers can make it harder to calculate the original purchase cost and the final profit from a sale.
For example, a user may buy Bitcoin on an overseas exchange, move it to a private wallet, and later sell it on a South Korean platform. Tax officials need clear records of the first purchase, the transfer, and the final sale to calculate the correct profit.
Domestic exchanges may have details of the final sale but not all records of the earlier purchase. If the user has moved assets across several platforms, the task can become more complex.
Officials have warned that, without enough overseas data, tax authorities may have to trace foreign transactions one by one. That would place a heavy burden on both the authorities and crypto users.
The government is therefore looking at whether a delay would allow more time for the systems and rules needed to apply the tax fairly.
What Is CARF, and Why Does It Matter?
The Crypto-Asset Reporting Framework, known as CARF, is an international tax data system developed by the Organisation for Economic Co-operation and Development, or OECD.
Its purpose is to help tax authorities share details about crypto transactions across national borders. This can make it easier for governments to check whether people have reported their taxable crypto income correctly.
South Korea is among the countries that plan to start the exchange of crypto tax data under CARF in 2027. Several other countries are also set to join that year. Canada, Switzerland, Singapore, Hong Kong, and other jurisdictions are expected to take part in 2028, while the United States is set to join in 2029.
The gap between these dates is a key part of the current debate.
The US is home to several large crypto platforms, so access to its transaction data may matter to South Korean tax officials. If South Korea starts its crypto tax in 2027 but cannot receive the same type of data from the US, some overseas transactions may be harder to check.
A delay until 2029 could bring the planned tax date closer to the US CARF schedule. Supporters say this would help authorities gain better access to foreign records and reduce the risk of unequal treatment.
However, CARF alone may not solve every problem. Tax officials will still need clear rules, reliable data, and systems that can handle different types of crypto activity.
Lawmakers Push for a 2029 Start Date
The proposal has also reached the National Assembly, South Korea’s main lawmaking body.
On October 16, Democratic Party lawmaker Park Min-gyu and 13 other lawmakers from the broader ruling bloc introduced a bill to delay the tax. The proposal would set the start date at January 1 of the second year after the first exchange of transaction data under CARF.
If the first exchange takes place in 2027 as expected, the tax would start in 2029 under this plan.
The opposition People Power Party has also supported a delay. Some lawmakers have proposed a start date of 2029, while other proposals have suggested 2030. Their reasons include gaps in tax systems and concerns about fair treatment for people who use different crypto platforms.
The debate is not limited to one political party. Lawmakers must decide whether the country is ready to apply the tax or whether more time is needed.
The government and ruling party are expected to hold further talks before a final decision. Recent reports point to late November or early December as a possible period for a decision through the National Assembly’s review of tax law changes.
Until lawmakers approve a change, the current date remains January 1, 2027.
Why Crypto Investors Want More Time
Many crypto investors and industry groups support another delay. They argue that the tax system needs clearer rules before the government starts to collect money from crypto profits.
One concern is the way tax officials will calculate the purchase cost of assets that move between local exchanges, foreign platforms, and private wallets. Another is how the rules will treat activities such as staking rewards, airdrops, and transactions through decentralised finance services.
Staking is a process in which users lock up certain crypto assets to help support a blockchain network and may receive rewards. An airdrop is a distribution of tokens to eligible users. Both can raise questions about when income should be taxed and how its value should be measured.
Industry groups say more time would help exchanges develop common systems to record transactions and prepare tax reports. Clear rules could also help users understand what they must report and how to keep the right records.
Some market participants warn that a tax system with unclear rules could push users toward overseas exchanges or decentralised platforms. That could make it harder for local authorities to track activity.
Supporters of a delay do not always oppose crypto taxes in general. Many say the government should first create a system that is clear, practical, and fair to users.
Why Some People Oppose Another Delay
Not everyone supports a further postponement. Critics argue that the government has already had several years to prepare for the tax.
The plan dates back to 2020, and the start date has changed three times. Another delay could make it harder for investors and businesses to know what rules will apply and when.
Critics also say that tax fairness requires crypto profits to face clear rules, just like income from other assets. If people can earn large profits from digital assets without a clear tax date, they may receive different treatment from people who pay tax on other forms of income.
The Tax and Fiscal Reform Center of People’s Solidarity for Participatory Democracy has urged the government to proceed with the current plan. The group has warned that repeated delays may weaken trust in tax policy and make the rules less predictable.
Some critics argue that the government should put the tax into effect while it improves its systems. In their view, problems with overseas data should not stop the country from setting a clear tax policy.
This creates a difficult choice for lawmakers. A delay could give the government more time to fix gaps, but it could also extend uncertainty for people who want a clear answer on their tax duties.
How Could the Decision Affect South Korea’s Crypto Market?
The final decision could affect local traders, exchanges, and the wider digital asset sector.
If the tax starts in January 2027, crypto users will need to prepare for the rules soon. They may have to keep better records of their purchases, sales, transfers, and other taxable activity. Exchanges may also need systems to help users work out their annual profits.
If the start date moves to 2029, users and businesses would gain two more years to prepare. Exchanges could use that time to improve their records and tax tools. Lawmakers could also clarify how the rules apply to more complex crypto transactions.
A delay may offer short-term relief to investors who are worried about tax costs. Yet it would not mean that crypto profits will never face tax. The proposal seeks to move the date, not remove the tax plan altogether.
The decision may also affect the way South Korea competes with other crypto markets. Clear and fair rules can help businesses plan for the future. Repeated changes, on the other hand, may make it harder for firms to decide where to set up services or invest in new products.
The effect on crypto prices is less certain. A delay may improve market mood among local investors, but Bitcoin and other digital assets also react to global events, interest rates, market demand, and other factors. The tax debate alone cannot predict the direction of prices.
What Happens Next?
The South Korean government is expected to consult relevant agencies and the ruling party before it reaches a final view. The National Assembly will then need to review any bill that seeks to change the current tax date.
Recent reports suggest that a decision may come in late November or early December 2026. However, the timing and outcome are not yet certain.
Investors should watch for an official statement from the presidential office, the Ministry of Economy and Finance, and the National Assembly. The final law will determine whether the tax starts in 2027 or moves to a later date.
Until a change is approved, the current legal plan remains in place. Crypto users should not assume that the tax has been cancelled or delayed just because the government is reviewing the proposal.
Final Thoughts
South Korea is considering a fourth delay to its crypto gains tax, with a new proposal that could move the start date from January 1, 2027, to January 1, 2029. The main reasons are gaps in overseas transaction data, concerns about fair tax treatment, and the need for better systems to calculate crypto profits.
The CARF schedule is at the centre of the debate. South Korea plans to start the exchange of crypto tax data in 2027, while the United States is set to join in 2029. Supporters say a delay could help close this gap and give exchanges more time to prepare.
However, critics warn that repeated delays can weaken trust in tax policy. They argue that the government should set a clear date and improve the system without further postponement.
For now, no final decision has been made. The next few months will be important for South Korea’s crypto sector, as lawmakers weigh tax fairness against the need for a clear and stable policy.
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This article is for information only and does not constitute tax, legal, or financial advice.
