South Korea Introduces 22% Crypto Tax from 2027

South Korea plans to introduce a tax on cryptocurrency profits from January 1, 2027. The proposed tax rate is 22%, consisting of a base rate of 20% and an additional 2% local tax.

The annual profit threshold for the tax is set at 2.5 million won (approximately $1740). This move has been in the works since before, but its implementation has been delayed multiple times.

Critics argue that the lack of a mechanism to carry forward losses may drive investors towards foreign and P2P platforms, potentially undermining the effectiveness of this initiative.