Here’s why South Korea is delaying crypto tax until 2029

South Korea has announced plans to postpone its cryptocurrency income tax by another two years, moving the proposed implementation date from January 2027 to 2029 as authorities prepare new tax rules and overseas transaction reporting systems. Summary South Korea’s government has formally proposed delaying its cryptocurrency gains tax from January 2027 until 2029. Finance Minister Lee Hyoung-il said the proposal would be the fourth postponement since the tax framework was introduced in 2020. The planned 22% tax on annual crypto gains exceeding 2.5 million won ($1,869) would remain unchanged. Seoul cited delayed cryptocurrency tax information exchanges with the United States and unfinished regulatory preparations. The government plans to introduce a three-year loss carryforward provision and establish a public-private working group. Finance Minister Lee Hyoung-il confirmed the government’s position during a November 5 press conference in Seoul, Yonhap News Agency reported. The proposal would represent the fourth postponement since South Korea introduced its cryptocurrency taxation framework in 2020, although the National Assembly must approve the change before it takes effect. The go...