South Korea is moving toward a fourth postponement of its planned cryptocurrency gains tax, with 2029 now the leading candidate for implementation. The discussion was confirmed by an official from the presidential office, known as the Blue House, according to a Newsis report on October 26. The tax overhaul debate is expected to begin in November, with consultations starting as early as October 26 and a final government decision likely between late November and early December.
The central obstacle is missing trading data from the United States. A Blue House official noted that almost half of the virtual asset market is in the US and that "the biggest obstacle is that the United States does not provide us with taxation information." Without that data, Korean tax authorities would need to trace US exchange activity account by account, meaning the tax could fall primarily on domestic exchange users.
South Korea originally introduced the levy in 2020 through an Income Tax Act revision. It imposes 22% including local taxes on gains above 2.5 million won, about $1,886, after acquisition costs are deducted. Parliament has already suspended the tax three times, and public opposition remains strong. A petition seeking a two-year delay reached the 50,000-signature threshold on the National Assembly electronic petition system. Supporters argue many investors are sitting on heavy losses and the tax is unfair to young people, while critics warn it could push trading offshore.
The timing is linked to the OECD’s Crypto-Asset Reporting Framework. The framework begins next year with 46 countries, including South Korea, exchanging data. Canada, Switzerland, Hong Kong and Singapore are among 29 countries joining in 2028, while the United States is scheduled to join in 2029. Seoul had initially favored January 2027 but is now leaning toward January 2029, matching a bill proposed by Democratic Party lawmaker Park Min-gyu. Regulators have also ordered blocks on 27 overseas exchanges including KuCoin and MEXC as of October 13.
