South Korea Pushes Back Crypto Tax Deadline Amid Infrastructure Concerns

South Korean lawmakers are pushing back against the country's planned cryptocurrency taxation. Kim Sang-hoon, of the ruling People Power Party (PPP), has proposed delaying the tax to January 2029, citing infrastructure gaps that make it difficult for the National Tax Service to track decentralized transactions.

The current law requires crypto gains to be taxed starting in January 2027, with a deduction threshold of 2.5 million won (approximately $1,850) for annual gains. Kim argues that tax authorities lack sufficient tools to monitor trades executed through decentralized exchanges, peer-to-peer markets, and DeFi protocols.

This is the third proposal from PPP lawmakers seeking to delay or abolish crypto taxation. The repeated legislative efforts reflect a broader debate within the party and the National Assembly about how to regulate and tax the rapidly evolving digital asset market.