South Korea Weighs Fourth Delay to Crypto Gains Tax Until 2029
Key Facts
South Korea’s presidential office is discussing a delay to the cryptocurrency gains tax with relevant government agencies. Under the current schedule, the tax is due to take effect on January 1, 2027, according to a report by The Block. The date could be pushed to 2029, in what would be the fourth delay since the plan was approved, but no decision had been made when the report was published. The Block said South Korea was “likely to delay its planned tax on cryptocurrency gains for the fourth time, potentially pushing implementation to 2029.” The discussions come as the government approaches the scheduled start date, while a separate bill proposes beginning the tax on January 1, 2029. That makes the proposed date a subject of legislative debate, not an effective change to the current schedule.
The plan originally set 2022 as the start date and has since been delayed 3 times, according to the report. It said concerns about tax infrastructure and investor protection were among the reasons cited by local traders and experts in connection with previous delays. The current discussion, The Block said, is linked to the difficulty of tracking crypto-asset transactions conducted overseas. The issue is significant because South Korea and the United States are set to exchange tax data on different timelines. Park Min-kyu, a lawmaker from the ruling Democratic Party, proposes in a separate bill setting January 1, 2029, as the tax’s start date.
South Korea and dozens of jurisdictions plan to begin exchanging crypto-asset transaction data through CARF in 2027, according to The Block, while the United States is expected to begin participating in 2029. The report links the possible delay to this timing gap, as authorities may not be able to access U.S. trading data automatically in the initial phase. Instead, they may have to track overseas transactions individually. The report said this approach “would also increase the burden on users of domestic platforms.” This challenge would put the tax’s implementation against a backdrop in which international data exchange does not begin at the same time in South Korea and the United States.
The next step was expected to become clearer during reviews of tax laws in the National Assembly, with discussions anticipated between late November and early December 2026, according to the report. The government presented the delay proposal in the presidential discussion, while Park Min-kyu’s bill sets a specific date for the tax to begin in 2029. January 1, 2027, remains the scheduled start date unless a legislative change is approved. The outcome of the discussion therefore depends on the upcoming review of tax laws in the National Assembly. That review puts the proposal before a legislative process expected in late November and early December.