South Korea Eyes 2029 Start for Crypto Gains Tax in Fourth Delay

South Korean authorities are reportedly considering a fourth postponement of the country’s crypto gains tax, potentially pushing its implementation to 2029, according to a local media report.

The delay aims to align the domestic tax schedule with the United States’ planned adoption of the Crypto-Asset Reporting Framework (CARF), an international tax standard developed by the Organisation for Economic Co-operation and Development (OECD). This move is intended to prevent domestic investors from facing a competitive disadvantage and to ensure a harmonized global approach to crypto asset taxation.

If enacted, this would mark the latest in a series of deferrals for the 20% tax on annual crypto gains exceeding 2.5 million won (approximately $1,800), which was originally slated to begin in 2022. The proposal is expected to be included in the government’s tax code revision plan set for release in July.

The potential delay underscores the ongoing challenges governments face in implementing effective and coordinated tax policies for the rapidly evolving digital asset sector, with international alignment becoming a key consideration.