South Korea's Crypto Tax Delayed by Three Years Amid Regulatory Review

A South Korean lawmaker has proposed delaying the country's cryptocurrency income tax by three years to January 2030, pushing back its planned implementation from January 2027. The proposal aims to give authorities more time to strengthen investor protections and regulations before the levy takes effect.

The current framework classifies income earned from transferring or lending virtual assets as 'other income', with a combined tax rate of 22% applied to annual gains above 2.5 million won ($1,800). This includes taxes on Bitcoin and Ether transactions.

Finance Minister Koo Yun-cheol had previously reaffirmed the government's intention to keep the existing January 2027 start date as part of its 2026 tax reform revisions. However, Representative Jeong Seong-guk's amendment seeks to delay the tax while lawmakers review the broader virtual asset taxation framework.

The People Power Party has introduced a separate bill to remove the virtual asset income-tax provision, arguing that it creates uneven tax treatment between different investment markets. This comes as South Korea prepares systems to improve oversight of crypto transactions and expand reporting requirements under the OECD's Crypto-Asset Reporting Framework.