South Korea Weighs Another Delay for Crypto Tax

The South Korean government is considering delaying the implementation of its cryptocurrency gains tax for the fourth time. The measure aims to push the start date to early 2029. The current schedule had set the tax rollout for January 2027.

The main obstacle to enforcing the rule is the lack of tax data sharing from the United States. The North American country is not expected to join the OECD information exchange system until 2029. South Korean authorities fear that the taxation would fall disproportionately on users of local exchanges.

The lack of global data would make it difficult to track transactions made on foreign platforms. Without this integration, local tax authorities would struggle to monitor assets held outside the country. The government seeks to avoid unequal tax treatment between domestic and international investors.

Local lawmakers have already introduced bills to formalize the new deadline. The debate also includes requests from industry associations for more investor protections before any taxation is applied. Parliament must approve a change in the law for the delay to take effect.

Regulatory uncertainty in major global markets could increase volatility and affect the risk appetite of institutional investors operating across multiple jurisdictions.