South Korea leans toward fourth delay of crypto gains tax, pushing start to 2029

Officials say lack of U.S. trading data sharing under OECD framework is the main obstacle

By LineZotpaper AI staff

Published26 October 2026

Read Time2 min

Illustration: South Korea leans toward fourth delay of crypto gains tax, pushing start to 2029

South Korean officials are leaning toward postponing the country's planned tax on cryptocurrency gains for a fourth time, pushing the start date to 2027 to 2029, according to local media reports. The delay is driven by concerns that the tax burden would fall disproportionately on users of domestic exchanges because the United States will not begin sharing crypto trading data until 2029 under the OECD's Crypto-Asset Reporting Framework.

South Korea is considering another postponement of its tax on cryptocurrency gains, delaying introduction until 2029, Newsis reported, citing unidentified officials. The presidential office is shifting toward a delay amid fears that authorities would struggle to track activity on U.S. platforms, making it hard to tax users of American exchanges.

"Almost half of the crypto market is the U.S.," an official told Newsis, calling the lack of U.S. tax data the biggest obstacle.

The discussions mark a change from the government's stance in July, when then-Deputy Prime Minister Koo Yun-cheol told lawmakers the tax would take effect in January 2027. Koo has since been replaced by Lee Hyung-il, who told lawmakers at an Oct. 6 parliamentary audit that he would gather views from parliament, experts and industry.

Under current rules, annual net income from crypto transfers or lending will be taxed at 20%, or 22% including local income tax, after a 2.5 million won ($1,887) deduction. The National Tax Service still lists Jan. 1, 2027 as the start date.

The concern stems from differences in when countries will begin sharing crypto trading data under the OECD's Crypto-Asset Reporting Framework (CARF). South Korea, Japan and the U.K. are due to begin exchanging data in 2027. Singapore, Switzerland and Hong Kong follow in 2028, while the U.S. will not start until 2029, according to the OECD timetable.

Ruling Democratic Party lawmaker Park Min-kyu has proposed moving the tax's start date to Jan. 1, 2029, according to local media. The levy was first scheduled for 2022. A fourth delay would require parliament to change the law, with a final decision expected by early December.

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Number of jurisdictions starting crypto tax data exchange per OECD CARF timetable

jurisdictions

Groups: 2027 includes South Korea, Japan, UK; 2028 includes Singapore, Switzerland, Hong Kong; 2029 includes the US. Source: OECD timetable, via Newsis/CoinDesk

Analysis

Why This Matters

South Korea is a major crypto trading hub; repeated delays prolong uncertainty for investors and exchanges.
The difficulty in taxing foreign platforms highlights global gaps in crypto regulation and enforcement.
Parliament's decision by early December will set the timeline for crypto taxation in the country.

Background

South Korea first scheduled a crypto gains tax for 2022 but has delayed it three times. The tax would apply 20% (22% including local income tax) on annual net gains above 2.5 million won. The current delay is driven by the fact that the U.S. will not share crypto trading data under the OECD framework until 2029, making it difficult to tax users of U.S. exchanges. The U.S., U.K. and Japan already tax crypto without waiting for cross-border data exchanges.

Key Perspectives

South Korean presidential office: Leaning toward a delay because the tax burden would fall disproportionately on users of domestic exchanges since the U.S. won't share trading data until 2029. "Almost half of the crypto market is the U.S.," an official said, calling the lack of U.S. tax data the biggest obstacle. Ruling party lawmaker Park Min-kyu: Has proposed moving the tax's start date to Jan. 1, 2029.

What to Watch

Whether the National Assembly passes the required amendment before early December.
Whether the U.S. accelerates its CARF implementation timeline before 2029.
How South Korea handles enforcement in the interim while domestic exchanges remain the primary targets for taxation.

Sources

South Korea weighs fourth delay on its crypto gains tax, pushing it to 2029 · CoinDesk

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim

SupportedSouth Korea is leaning toward a fourth delay of its crypto gains tax, which would move its start to 2029.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “South Korea is leaning toward delaying its tax on crypto gains for a fourth time.”
SupportedOfficials say the lack of U.S. crypto-trading data sharing is the main obstacle to the tax.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: ““Almost half of the crypto market is the U.S.,” an official told the news outlet, calling the lack of U.S. tax data the biggest obstacle.”
Partly supportedSouth Korean officials are leaning toward postponement, according to local media reports.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The presidential office is leaning toward a delay amid concerns that the tax burden would fall largely on users of South Korea-based exchanges because authorities would struggle to track activity on U.S. platforms, the report said, citing unidentified officials.”
Partly supportedThe opening says the start date is being pushed “to 2027 to 2029.”CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “South Korea is considering delaying its tax on cryptocurrency gains for a fourth time, postponing the introduction until 2029, Newsis reported.”
SupportedThe proposed delay is driven by concern that domestic-exchange users would bear a disproportionate tax burden because authorities would struggle to track activity on U.S. platforms.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The presidential office is leaning toward a delay amid concerns that the tax burden would fall largely on users of South Korea-based exchanges because authorities would struggle to track activity on U.S. platforms, the report said”
SupportedAn official told Newsis, “Almost half of the crypto market is the U.S.”CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: ““Almost half of the crypto market is the U.S.,” an official told the news outlet”
SupportedIn July, Deputy Prime Minister Koo Yun-cheol told lawmakers the tax would take effect in January 2027.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The discussions signal a shift from the government's stance in July, when Deputy Prime Minister Koo Yun-cheol told lawmakers that the tax would take effect in January 2027.”
SupportedLee Hyung-il replaced Koo and told lawmakers at an Oct. 6 parliamentary audit he would gather views from parliament, experts and industry.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Koo has since been replaced by Lee Hyung-il, who told lawmakers at an Oct. 6 parliamentary audit that he would gather views from parliament, experts and industry.”
SupportedAnnual net income from crypto transfers or lending is due to be taxed at 20%, or 22% including local income tax, after a 2.5 million won ($1,887) deduction.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Under the current rules, annual net income from crypto transfers or lending will be taxed at 20%, or 22% including local income tax, after a 2.5 million won ($1,887) deduction.”
SupportedUnder the OECD timetable, South Korea, Japan and the U.K. are due to begin exchanging crypto data in 2027; Singapore, Switzerland and Hong Kong in 2028; and the U.S. in 2029.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “South Korea, Japan and the U.K. are due to begin exchanging data in 2027. Singapore, Switzerland and Hong Kong are set to follow in 2028, while the U.S. will not start until 2029, according to the OECD's timetable.”
SupportedRuling Democratic Party lawmaker Park Min-kyu proposed moving the tax start date to Jan. 1, 2029, according to local media.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Ruling Democratic Party lawmaker Park Min-kyu has proposed moving the tax's start date to Jan. 1, 2029, according to local media.”
SupportedA fourth delay would require parliament to change the law.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “A fourth delay would require parliament to change the law.”