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South Korea discusses potential delay of cryptocurrency income tax
South Korean government officials are meeting with major cryptocurrency exchanges to discuss the implementation of a planned 22% tax on digital asset income. The meeting includes representatives from Upbit, Bithumb, Coinone, DigitalX, and Gopax, as well as the Digital Asset Exchange Alliance (DAXA).
There is growing pressure from both the industry and lawmakers to postpone the tax, which is currently scheduled to begin in January 2027. Critics and industry experts cite several unresolved issues, including the lack of clear taxation standards for staking, airdrops, and decentralized finance (DeFi) activities. Additionally, concerns have been raised regarding the difficulty of tracking transactions on overseas exchanges and private wallets, which could lead to tax inequity.
Some lawmakers have proposed delaying the tax implementation until 2029 to allow for the establishment of international data-sharing frameworks, such as the OECD’s Crypto-Asset Reporting Framework (CARF). While the government maintains the principle that “income should be taxed where it is earned,” officials are reviewing ways to improve tax infrastructure and reporting convenience to ensure a fair and stable rollout.
Entities
Bithumb · DAXA · Digital Asset eXchange Alliance · Financial Services Commission · National Tax Service · OECD · South Korea · South Korean government · Upbit
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] A lawmaker has introduced legislation that could push the implementation of cryptocurrency taxation toward 2029. crypto.news · cryptobriefing.com
- [● 3 SOURCES] The proposed cryptocurrency tax includes a 22% levy on qualifying annual income above a 2.5 million won exemption. crypto.news · cryptobriefing.com · www.newstomato.com
- [● 2 SOURCES] South Korean officials will meet five major crypto exchanges on October 20. crypto.news · www.newstomato.com
- [○ 1 SOURCE] The current tax system does not allow for the carryover of losses to future years. zdnet.co.kr
- [● 3 SOURCES] Exchanges report that unresolved rules for staking, airdrops, and DeFi complicate tax preparations. crypto.news · cryptobriefing.com · www.newstomato.com
- [● 3 SOURCES] The tax implementation is currently scheduled for January 1, 2027. crypto.news · cryptobriefing.com · www.newstomato.com