South Korea's government and ruling party want to delay the planned 22% tax on crypto gains by about two years, according to four outlets. The proposal would be the fourth postponement and ties the start date to new digital asset legislation and international tax data sharing.
Seoul backs a two-year pause on the crypto gains levy
South Korea's government has thrown its weight behind postponing the tax on cryptocurrency gains until 2029, Cointelegraph reported. Finance Minister Lee Hyoung-il announced the proposal on Thursday and said the government would consult lawmakers on moving the January 2027 start date.
If approved, it would be the fourth time the levy has been pushed back. CoinDesk describes the ruling party as seeking a postponement of roughly two years, pending international tax-sharing arrangements and a new digital assets law.
The move reverses an earlier signal. A Finance Ministry official said in May that the tax would go ahead in 2027, according to Cointelegraph.
Why 2029 is the date officials chose
Cointelegraph says the government linked the new date to 2029, when South Korea is expected to begin information exchange with the United States under the Crypto-Asset Reporting Framework. That framework is an international system under which tax authorities share data on residents' crypto holdings and transactions held abroad.
Officials argued that taxing gains before those exchanges start could leave the domestic market at a disadvantage against overseas venues. They also want time to reflect changes expected under planned digital asset legislation.
The Block reports that the party leader said the country should first enact the Digital Asset Basic Act, which it describes as a comprehensive legal framework for crypto. The Defiant attributes the same sequencing demand to Kim Min-seok, who wants a digital-asset framework enacted before any taxation.
What the tax and the proposed changes involve
The levy as currently written is a flat rate on annual profits above a basic allowance. Cointelegraph gives the following details.
- The rate is 22%, made up of a 20% income tax and a 2% local tax.
- Only annual crypto gains above 2.5 million won ($1,860) would be taxed.
- The government plans a three-year loss carryforward, letting investors offset crypto losses against profits earned in the following three years.
- Amendments to improve the tax system would go to parliament during its regular session in 2027.
- Detailed tax guidelines are planned for the first half of 2028.
How the four accounts compare
Cointelegraph is the only outlet in this group with full text, and it centres on the government's position and the Finance Minister's announcement. CoinDesk, The Block and The Defiant focus on the ruling party's push, and the three summaries are consistent about the direction of travel.
The outlets differ in emphasis rather than substance. CoinDesk gives international tax-sharing arrangements and a new digital assets law as the reasons for holding off. The Block stresses that the Digital Asset Basic Act should come first. The Defiant says a two-year postponement is under discussion.
The Defiant also adds an important caveat: the legal start date remains Jan. 1, 2027 for now. Cointelegraph likewise describes the step as a proposal on which the government will consult lawmakers, not a change already in force. The Block calls the party's move a formal proposal.
A tax that has kept slipping since 2022
Cointelegraph notes that the tax was first scheduled to take effect in January 2022. It was later postponed to 2023, then to 2025, then to 2027, and the new plan would move it to 2029.
The report also says finance officials recently met major crypto exchanges amid growing calls for a delay. Industry representatives said the rules for several kinds of transactions were still not settled and that exchanges lacked enough time to get their systems ready. In practice, exchanges would need to calculate gains, track losses across years and report them accurately before any levy could work.
What to watch next
The first open question is how quickly lawmakers act. Because the legal start date is still Jan. 1, 2027 according to The Defiant, a formal amendment would be needed before that date for a delay to take effect.
A second question is the legislative order. Both The Block and The Defiant say the ruling party wants the Digital Asset Basic Act enacted before taxation, so progress on that bill may shape how firm the 2029 date proves. A third is whether the three-year loss carryforward survives in the final amendments.
Exchanges and investors can also track the 2027 parliamentary session, when the government plans to submit its tax system amendments, and the detailed guidelines due in the first half of 2028.
FAQ
When would South Korea's crypto tax now start?
The government has proposed moving the start to 2029, according to Cointelegraph. The legal start date is still Jan. 1, 2027 until lawmakers approve a change, as The Defiant noted.
What is the planned crypto tax rate in South Korea?
The planned levy is 22%, made up of a 20% income tax and a 2% local tax. It would apply to annual crypto gains above 2.5 million won ($1,860), according to Cointelegraph.
Why does South Korea want to delay the tax again?
Officials pointed to 2029, when data sharing with the US begins under the Crypto-Asset Reporting Framework, and to digital asset legislation now being planned. Cointelegraph reported that industry groups also raised open questions on tax rules and a shortage of time to prepare systems.
Sources
- Cointelegraph: South Korea seeks 4th crypto tax delay, targets 2029 start (2026-11-05)
- CoinDesk: South Korea's ruling party wants to delay its crypto tax again (2026-11-04)
- The Block: South Korea’s ruling party formally proposes deferral of crypto income tax (2026-11-04)
- The Defiant: South Korea’s Ruling Party Formally Seeks Crypto Tax Delay (2026-11-04)
Written by the Coinvote news desk from reporting by Cointelegraph, CoinDesk, The Block and The Defiant. Not financial advice.
