South Korea Reiterates Crypto Tax Plan Amid Growing Regulatory Scrutiny

South Korea has reaffirmed its commitment to introducing crypto taxation in 2027 as part of a dual strategy aimed at bringing crypto under a formal tax framework while strengthening investor protection through stricter enforcement. The government's plan underscores a growing trend towards regulating the cryptocurrency market, which has seen increased adoption and investment in recent years.

Finance Minister Koo Yun-chul confirmed the crypto tax timeline during a National Assembly session, stating that the government will proceed with crypto taxes from January 1, 2027. The tax plan aims to bring virtual asset profits under taxation, with profits above 2.5 million won subject to a 20% tax rate.

Meanwhile, Seoul police announced the arrest of three individuals suspected of being behind an XRP investment scam involving approximately 27 billion won ($19 million) in criminal proceeds. The suspects allegedly operated an XRP staking site that offered 1.5% to 1.8% returns every month in the form of XRP tokens, luring 71 people into sending around 3.4 million XRP.