South Korea Pushes Cryptocurrency Tax to 2029 as Regulatory Gaps Delay Implementation

Seoul, 5 November 2026 – South Korea’s Ministry of Economy and Finance has announced plans to postpone taxation of digital-asset income by two years to 2029, extending a measure previously scheduled to take effect on 1 January 2027. The proposal would delay a tax regime imposing an effective 22% rate on annual cryptocurrency gains exceeding 2.5 million won, including local income tax, as authorities seek more time to strengthen reporting systems and align domestic regulations with international information-sharing arrangements.

For Asian cryptocurrency investors and digital asset exchanges, the proposed delay highlights the difficulty of introducing consistent taxation in a market where trading can move across national borders. South Korean authorities face questions over how to track offshore transactions, ensure fair treatment between domestic and overseas exchanges, and implement tax rules alongside broader digital asset legislation. The development may provide additional preparation time, but it also prolongs uncertainty over when and how investors will ultimately be taxed.