Korea weighs fourth crypto tax delay

The government is considering the delay due to questions about whether authorities can reliably determine the acquisition costs of crypto purchased through overseas exchanges or obtain sufficient foreign transaction data.

The ruling Democratic Party (DP) will meet with the heads of Korea’s major cryptocurrency exchanges to weigh another delay to the planned crypto tax, following concerns that the levy could disproportionately affect users of domestic platforms.

The DP will consult executives from the country’s five leading cryptocurrency exchanges, including Dunamu and Bithumb, on Friday morning to examine whether the industry is ready for the tax and what challenges remain before a final decision.

The cryptocurrency tax was originally scheduled to take effect in 2022 but has been postponed three times — first to 2023, then to 2025 and finally to 2027.

Under the upcoming tax framework, individuals will pay a 22 percent tax, including local income tax, on annual income above 2.5 million won ($1,870) from selling or lending cryptocurrencies.