Seoul wants to push the 22% levy on digital-asset gains to 2029 so it lines up with CARF data-sharing — a fourth delay that keeps Asia’s biggest retail crypto market untaxed for another two years.
MoneyTurkey Crypto Desk | 5 November 2026
Key points
- Finance ministry asks lawmakers to move the 22% tax on annual crypto gains above 2.5 million won (~$1,860) from January 2027 to 2029, citing the start of CARF exchange with the US.
- Officials plan a three-year loss carry-forward, tax-rule amendments in the 2027 parliamentary session, and detailed guidelines in the first half of 2028.
South Korea’s finance ministry has asked lawmakers to postpone the planned 22% tax on cryptocurrency gains for a fourth time, shifting the start date from January 2027 to 2029. Finance Minister Lee Hyoung-il floated the proposal on Thursday, saying the delay would align the levy with automatic information exchange under the Crypto-Asset Reporting Framework and give new digital-asset legislation time to settle before the tax bites.
For global desks, the signal is straightforward: one of Asia’s deepest retail crypto venues stays tax-free on gains through 2028, while domestic exchanges avoid a reporting gap versus foreign platforms that only face CARF peer sharing from 2029.
What happened
The tax was originally set for January 2022 and has already been delayed three times — to 2023, 2025 and 2027. The new proposal would stretch that run to 2029. The 22% rate combines a 20% national income tax and a 2% local tax and would apply to annual gains above 2.5 million won (~$1,860).
The ministry said the United States will begin exchanging crypto-transaction data with South Korea under CARF only in 2029. Taxing domestic investors before foreign platforms face the same reporting rules, officials argued, would put local exchanges at a disadvantage.
The government also wants a three-year loss carry-forward so investors can offset crypto losses against later gains. It plans to submit the tax amendments in parliament’s 2027 regular session and to issue detailed guidelines in the first half of 2028.
Why the reversal
The pitch reverses the ministry’s May line that the 2027 start date would stand. Recent meetings with major crypto exchanges appear to have moved the dial. Industry representatives told officials that tax treatment for different transaction types is still unclear and that exchanges need more time to build reporting systems.
Officials also want the levy coordinated with broader digital-asset legislation now under discussion, warning that investors and platforms could otherwise face conflicting rules.
Next steps
Lawmakers will weigh the delay in the current parliamentary session. If it passes, the tax code stays unchanged until 2029. The ministry said it will keep consulting market participants on the loss-carry-forward design and on reporting standards that match CARF.
What to watch
- Parliamentary vote on the proposed 2029 start date
- Draft tax amendments in the 2027 session
- Detailed guidelines in the first half of 2028
- Digital-asset legislation that could widen or narrow the tax base
Related on MoneyTurkey
- Crypto movers: TRUMP Falls 16.2% After Democratic Midterm Sweep as Bitcoin Holds $80k
- Binance Says It Has Refilled 98% of Hacked Assets as Bitcoin Retakes $80,000
For information only. Not investment advice.
Sources
- Cointelegraph (Finance Minister Lee Hyoung-il / ministry briefing): https://cointelegraph.com/news/south-korea-crypto-tax-fourth-delay-2029
