South Korea is considering delaying its tax on cryptocurrency gains for a fourth time, postponing the introduction until 2029, Newsis reported.
The presidential office is leaning toward a delay amid concerns that the tax burden would fall largely on users of South Korea-based exchanges because authorities would struggle to track activity on U.S. platforms, the report said, citing unidentified officials.
“Almost half of the crypto market is the U.S.,” an official told the news outlet, calling the lack of U.S. tax data the biggest obstacle.
The discussions signal a shift from the government's stance in July, when Deputy Prime Minister Koo Yun-cheol told lawmakers that the tax would take effect in January 2027. Koo has since been replaced by Lee Hyung-il, who told lawmakers at an Oct. 6 parliamentary audit that he would gather views from parliament, experts and industry.
Under the current rules, annual net income from crypto transfers or lending will be taxed at 20%, or 22% including local income tax, after a 2.5 million won ($1,887) deduction. The National Tax Service still lists Jan. 1, 2027 as the start date.
The concern stems from differences in when countries will begin sharing crypto trading data under the OECD's Crypto-Asset Reporting Framework (CARF).
South Korea, Japan and the U.K. are due to begin exchanging data in 2027. Singapore, Switzerland and Hong Kong are set to follow in 2028, while the U.S. will not start until 2029, according to the OECD's timetable.
K. and Japan already tax crypto without waiting for cross-border data exchanges.
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