South Korea Considers Pushing Crypto Tax to 2029 Over Missing U.S. Trade Data

By Coinvote

Published October 26, 2026 - 15:23 UTC | 5 mins read

South Korea's presidential office is reportedly leaning toward a fourth postponement of its crypto gains tax, from January 2027 to 2029. Officials point to the lack of U.S. trading records, which Washington will not begin sharing under the OECD framework until 2029.

Presidential office leans toward another postponement

South Korea is weighing a fourth delay to its tax on crypto gains, and 2029 is the date under discussion. CoinDesk, citing a report from Newsis, wrote that the presidential office is leaning toward postponement. The outlet attributed the position to unidentified officials.

The Block carried the same story, describing the delay as one that reportedly aims to match the U.S. schedule for adopting the OECD's Crypto-Asset Reporting Framework, known as CARF. Bitcoin Magazine added that the presidential office is in talks with government agencies and cited gaps in the regulatory framework. It also cited the difficulty of applying identical rules to trades made at home and abroad.

Nothing is settled yet. The National Tax Service still lists January 1, 2027 as the start date, according to CoinDesk, and a fourth delay would require parliament to amend the law.

A tax that has been pushed back repeatedly

Bitcoin Magazine traced the levy to a 2020 amendment to the Income Tax Act. The start was first set for 2022 and was later moved to 2023, then 2025, then 2027, with officials acknowledging that neither tax systems nor investor safeguards were prepared.

Both full-text outlets describe the same basic design. Annual net income from transferring or lending virtual assets is taxed once it exceeds a fixed deduction.

Rate: 20%, or 22% once the local income tax is included.
Deduction: 2.5 million won, which CoinDesk converted to about $1,887.
Taxable activity: transfers and lending of crypto assets.
Current start date: January 1, 2027.
Proposed start date: 2029.

Why U.S. data sharing is the sticking point

CARF is the standard under which national tax authorities exchange records of their residents' crypto transactions. A country that taxes gains can only verify offshore activity if foreign platforms report it through this system. CoinDesk, citing the OECD's timetable, said South Korea, Japan and the U.K. are due to start exchanging data in 2027. Singapore, Switzerland and Hong Kong follow in 2028, and the U.S. begins in 2029.

An official quoted by Newsis said that "almost half of the crypto market is the U.S." and called the missing U.S. information the biggest obstacle. Bitcoin Magazine explained the practical worry. Without U.S. records, the National Tax Service would have to pursue overseas transactions one by one. Users of domestic exchanges, who are easy to track, would then carry a heavier burden than people trading on foreign platforms or holding in self-custody.

CoinDesk noted a counterpoint. In the U.S., the U.K. and Japan, crypto gains are already taxed, and those countries did not hold off until international data sharing began. CoinDesk also reported that Seoul had earlier maintained that overseas assets could be traced using reports on foreign financial accounts.

Lawmakers, petitions and industry press from several sides

Bitcoin Magazine reported that Park Min-gyu of the Democratic Party submitted a bill on October 16 together with 13 colleagues. Under the bill, the tax would begin on January 1 two years after international data exchange first starts, a date that corresponds to 2029. Bitcoin Magazine also reported that People Power Party lawmaker Song Eon-seok submitted a separate bill to repeal the levy.

The outlet also said that a pair of public petitions, seeking repeal and a two-year deferral respectively, each reached 50,000 signatures, which obliges the legislature to examine them. Kim Min-seok, who leads the Democratic Party, called for a "thorough final review," which Bitcoin Magazine characterized as a change of position for a party that had stood by the 2027 date. The Korea Digital Asset Business Association supported the 2029 date and urged the government to enact legislation on digital assets, with investor safeguards comparable to those in stock markets, ahead of any tax taking effect.

The government's own tone has also changed. CoinDesk recalled that Deputy Prime Minister Koo Yun-cheol told lawmakers in July that the tax would start in January 2027. The successor, Lee Hyung-il, told an audit in parliament that opinions would be sought from lawmakers, specialists and the industry.

Where the two detailed accounts differ

The outlets agree on the core story but diverge on emphasis and on several details. CoinDesk stresses the international comparison and says the office is only leaning toward a delay. Bitcoin Magazine goes further, saying a 2029 start is gaining support among lawmakers and industry groups, and it supplies most of the legislative detail. The Block's coverage, based on a headline and summary, supports only the point that the delay reportedly targets alignment with the U.S. CARF schedule.

Names and dates are rendered differently. CoinDesk spells the Democratic lawmaker as Park Min-kyu, while Bitcoin Magazine writes Park Min-gyu. CoinDesk names the official as Lee Hyung-il and gives the title of Deputy Prime Minister, whereas Bitcoin Magazine writes Lee Hyeong-il and calls the same role Finance Minister. CoinDesk dates the parliamentary audit to October 6, while Bitcoin Magazine says it took place on a Thursday. The two also differ slightly on the won conversion, at $1,887 and $1,888.

What the delay debate means for traders and exchanges

For people who trade on Korean platforms, the start date determines when gains must be tracked and reported. Bitcoin Magazine noted that the National Tax Service is continuing its preparations regardless. The tax service intends to release a draft notice about taxable crypto income before October ends, so the mechanics may be public even if the start date moves.

The legal backdrop is also incomplete. Bitcoin Magazine said the Virtual Asset User Protection Act took effect in July 2024, but the Digital Asset Basic Act, a licensing framework, has not passed. Some legislators have asked whether a market should be taxed when the legislation defining it has not yet been enacted. That argument is one reason the industry association tied its support for 2029 to new investor protections.

Decisions and open questions to follow

Bitcoin Magazine reported that, once the parliamentary audits end, the government anticipates reaching its stance via discussions among its agencies. A decision would then come through National Assembly tax revisions between late November and early December.

Several questions remain open. It is not yet clear whether parliament will adopt the 2029 bill, the repeal bill or neither. It is also unknown whether the tax authority's draft notice will assume a 2027 start. Finally, the Digital Asset Basic Act has no confirmed timetable, and its progress may shape whether lawmakers accept a delay.

Market snapshot

Asset	Price	24h	7d	Market cap
Bitcoin (BTC)	$80,339	-0.3%	-2.2%	$1.61 trillion

CoinGecko data as of 2026-10-26 (UTC).

FAQ

When is South Korea's crypto tax currently scheduled to start?

The National Tax Service still lists January 1, 2027 as the start date, according to CoinDesk. Officials are now considering a fourth delay that would move the start to 2029.

Why does the U.S. matter for South Korea's crypto tax timing?

Under the OECD's CARF timetable cited by CoinDesk, the U.S. will not begin exchanging crypto trading data until 2029. An official told Newsis that this gap is the biggest obstacle, because Korean exchange users could bear most of the tax burden.

How is the South Korean crypto gains tax calculated?

Annual net income from crypto transfers or lending is taxed at 20%, or 22% including local income tax. The rate applies after a 2.5 million won deduction, according to CoinDesk and Bitcoin Magazine.