South Korea lawmakers mull pushing crypto tax implementation to 2029

Government officials in South Korea are reportedly weighing a delay of the country’s cryptocurrency tax policy, currently expected to be implemented in January 2027. 

According to a Monday report from South Korean news outlet Newsis, the crypto income tax could be pushed to 2029 in part because it’s the earliest that officials will be able to share information on taxes related to digital asset exchanges with the US.

The policy, which would impose a 22% tax on crypto gains — 20% from income and 2% as part of a local tax — for investors earning more than 2.5 million Korean won ($1,883) annually has already seen several delays since it was first proposed in 2020.

“We are discussing postponing the implementation of virtual asset taxation,” said an official from the Blue House presidential residence.

The US is scheduled to begin participating in the OECD’s Crypto-Asset Reporting Framework in 2029, while South Korea will implement the rules starting in 2027. A South Korean official reportedly said that the country was considering another delay for the crypto tax as the US “accounts for nearly half of the virtual asset market.”